Daily Flows

• ANZ Capital Notes 9 have launched with a price guidance of 3mBBSW + 2.90-3.10% (off of todays BBSW outright, 7.45%). Bidding for new funds closes next week.
• Flow has been directed to a 5 year term deposit offering of 5.22% from an ‘A’ rated bank. Looking at the market this offers significant value, with other offering 0.22% lower.
• In the NCD space, banks in the mutual sector have been happy to pay higher margins from Non-ADI counterparties in light of potential APRA proposals.

Michelle Bullock Appears Before the Senate

• This morning Michelle appeared before Economics Legislation Committee. She emphasised that the global economy has held up better than the RBA expected and that there had been some worries about a hard-landing recession.
• As always, she stressed that the RBA is data dependent and has to make decisions based on what’s in-front of them.
• Overnight, markets consolidated following an overstated response to the stronger than expected CPI data.
• Today employment data is released in Australia, although this figure tends to be quite volatile, this print will be watched closely by the markets to discern any loosening in the labour market.