Daily Flows

• Yesterday, longer-dated semi-government floaters were quickly snapped up by investors, with trading scooping up TCorp 3mBBSW+39 volume.
• Longer-dated term deposits continue to see interest, with an ‘A’-rated bank offering upwards of 5.25% for a 5-year tenor.
• Tomorrow, the Monthly CPI will be released. Market participants should not expect significant movement in interest rate markets compared to the quarterly print.

Markets React to Bessent’s Appointment

• Trump’s appointment of Bessent as Treasury Secretary yesterday prompted a notable decline in bond market yields.
• The 10-year U.S. Treasury yield fell by just over 10 basis points following the announcement.
• Financial markets appear to have interpreted Bessent as a moderating influence on Trump’s policies and their potential inflationary impact.
• Past statements from Bessent suggest support for the gradual implementation of trade restrictions and a measured approach to tariffs.
• Locally, the Australian Monthly CPI indicator will be released tomorrow, and the week will conclude with key FOMC minutes and U.S. PCE data.