Daily Flows

• 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.