Daily Flows

• Demand in the domestic sectors has picked up across the system, with banks increasingly willing to offer bespoke rates to attract funds.
• Rates above 5.05% for 6-12 months are needed to lure market participants away from major bank offerings.
• NCDs continue to be offered at +40 for 3-6 months in the domestic space.

Markets Hold Their Breath for Domestic Inflation Data

• Today, markets await a crucial Q3 inflation print, with expectations of a 2.8% year-on-year increase and a quarterly rise of 0.3%.
• Headline inflation is expected to be heavily influenced by Federal and state electricity rebates.
• The most relevant inflation measure will be the Trimmed Mean, as it captures core inflation, which is less affected by electricity rebates.
• Despite a slowdown in trimmed mean inflation, most economists still predict that the rate-cutting cycle will not commence this calendar year.
• Easing wage growth and softening consumer demand, albeit at a gradual pace, continue to support a disinflationary trend.