Daily Flows & Insights – Markets Poised for an RBA Hold

Daily Flows

  • With most investors waiting for RBAs interest rate decision today and the first day of the month flows were limited yesterday.
  • That being said, attractive TD offerings still saw flow with the BBB space reaching levels of 4.90% for 6 months.
  • The NCD market was quiet, any activity that did occur was at a level of +40 for 3 months.

Markets Poised for an RBA Hold

  • There is optimism that the international banking crisis is behind us, kicked off by Silicon Valley Bank earlier this year, with JP Morgan set to acquire the struggling First Republic bank
  • Markets reacted positively to the news with JPM share jumping, up 2.14% on the day.
  • Locally, most institutions are predicting a pause for today’s RBA meeting, leaving the cash rate at 3.60%.
  • The main thing to keep an eye out for is the tone of the decision and the minutes when released as it will give further guidance on monetary changes over the coming months.
  • There is debate on whether we are at the terminal rate for this current hike cycle, however over the past few weeks of news and data, the case for no more hikes is getting stronger and stronger
  • To see a live reaction to this news our Head of Money Markets, David Flanagan, will be on Ausbiz live at 2:30pm – See here
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Curve Team
Joshua Haddon