Daily Flows & Insights – Markets Hold Their Breath Ahead of US & Aussie Inflation Prints

Daily Flows

  • Strong interest in the ANZ 3 & 5 year fixed and floating lines launched yesterday saw total interest of $7.5 billion, with allocations totalling $4.1b across the four lines.
  • The new A2/BBB name seeking wholesale funding via Curve has paid attractive rates this week, with 5.15% for 9 months and 5.20% for 12 months still available.
  • Investors willing to look further out the curve can capitalise on rates from foreign branches of 5.02% for 2 years and 5.26% for 5 years for those keen to lock in yields.

Markets Hold Their Breath Ahead of US & Aussie Inflation Prints

  • The USD was down -0.33% overnight on the DXY Index as traders await Personal Consumption Expectations (PCE) data to round out the week.
  • Surveyed economists continue to expect an 0.2% MoM increase in Friday’s data print, which would likely continue to reinforce the narrative that inflation is cooling.
  • Westpac’s December Leading Economic Index, released in conjunction with the Melbourne Institute, showed a -0.04% decline MoM in December as growth slowed across the economy.
  • This index doesn’t move the market but does add softening momentum on the back of Tuesday’s NAB business confidence survey, which showed a third consecutive month of negative prints, ahead of next week’s Q4 CPI.
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Curve Team
Josiah Binet