Daily Flows
- A domestic BBB issuer came to market offering +45 for 3-6 month NCDs and was met by investors quickly.
- Investors chasing yield have to look to 4-5 year term deposits where they are rewarded term premium. 2-3 year term deposits are pricing in rate hike cuts with levels 10+ basis points lower (reference rates at: 2 year 3.99, 3 year 3.90, 4 year 4.07 and 5 year 4.11).
- A foreign ‘A’ rated bank attracted flow to their 1 year term deposit with an offering of 5.17%.
Markets Quiet Ahead of Data-Heavy End to the Week
- Markets exhibited caution yesterday in anticipation of a week filled with crucial economic data, including Euro GDP and inflation data, domestic inflation figures, the FOMC meeting in the U.S., and the Bank of England interest rate decision.
- In the U.S., stocks concluded the day on a higher note, and bond yields experienced a slight softening.
- Despite growing geopolitical tensions and uncertainties, oil prices saw a slight easing. The recent drone strike over the weekend serves as an example of these concerns.
- The combination of such events along with shipping disruptions in the Red Sea could contribute to inflationary pressures on the supply side. Central Banks will need to be wary of this.
- Today, retail sales data is set to be released at 11:30 am, with an expected negative reading of -1%, marking a reversal from the 2% pickup observed in November.