Daily Flows

• Non-major bank paper attracted significant flows yesterday in the 3-5 year space, with the recently-upgraded Bendigo & Adelaide Bank proving a popular issuer.
  
• A1 banks were also active yesterday in the term deposit space, with 12 month rates of 5.31% and 5.27% available from two A1/A names.
  
• There was a bid tone to kick off the week from NCD issuers with a number of A1 & A2 names looking to issue yesterday. +50 remains the market level with opportunities available at +55 for investors.
  

The Week Ahead

• The Aussie dollar was up for the second consecutive day on Monday with the DXY Index paring back, with a risk-on theme prevailing as the ASX finished up 0.8%.
  
• Australian retail sales for the month of April are due out at 11:30am, with consensus estimates of an 0.2% gain MoM after a downside surprise of -0.4% in March.
  
• Annual growth is currently at its lowest level since the pandemic, growing just 0.8% in the year to March. Despite stimulatory tax cuts on the horizon in July, little improvement is expected in the interim amidst persistent weakness in household spending.
  
• Education, healthcare, and insurance comprised the majority of spending increases in the most recent monthly print, with spending on entertainment, clothing, and household goods falling. This morning’s print will be one to watch to see if these trends continue, which would suggest consumers are continuing to feel the impact of 425 basis points in hikes by the Reserve Bank.