Daily Flows

• A green A-2/BBB+ rated bank continues to offer strong value in the short-term space, holding 4.50% for 5 months, the highest on offer under 12 months.
• With mid-month approaching, many BBB ADI’s are expected to look for funding, likely increasing term deposit rates.
• Demand for NCDs remains stable, with new money continuing to clear around +45bps over 3-month BBSW.

Markets Watch Trade talks

• Markets are cautiously optimistic about progress in US–China trade talks, with meetings in London ongoing and scheduled to continue Tuesday. Markets remain sensitive to headlines in the meantime.
• US government bond yields dipped on Monday, reversing part of Friday’s move that followed stronger-than-expected jobs data. The 10-year Treasury yield eased by 4bps to 4.47%.
• Friday’s US Payrolls came in near expectations at +139k (vs. 126k forecast), while the unemployment rate held steady at 4.2%.
• In Australia, attention turns to the NAB Business Survey and Westpac Consumer Sentiment. Confidence has improved slightly since mid-2024, but with household spending soft, a stronger rebound would provide a clearer sign of recovery.