A Non-Fossil Fuel Bank that was recently upgraded to A-2/BBB by S&P is currently offering a 5.35% interest rate for 12-month term deposits.
Yesterday, the Westpac 5-year issuance was priced at a margin of 3mBBSW +88, resulting in $1.75 billion in the Floating Rate Note (FRN) market and $1.45 billion in the Fixed Rate (FXD) market.
In the NCD space, bespoke interest rates are being offered by banks to quickly address funding gaps.
Markets Quiet Overnight Ahead of RBA Meeting
Minimal data points influenced trading in the U.S. overnight.
U.S. equities continued their three-day run, with markets digesting Powell’s conference and soft payroll data from last Friday.
The Senior Loan Officer Survey (SLOOS) indicated that lending standards have tightened considerably, and demand for commercial/business loans has slowed.
In the Middle East, there is potential for stability as Hamas agrees to a proposed cease-fire, although Israel has rejected it due to not meeting its demands.
Most economists surveyed by Bloomberg expect the Reserve Bank of Australia (RBA) to hold rates today. It will be interesting to see the RBA’s new forecasts, especially considering hotter-than-expected inflation data and jobs data that is currently not tracking in line with RBA forecasts.