Daily Flows

• Demand has picked up with a couple banks chasing in the domestic space across NCDs and TDs.
• A domestic A-2/BBB+ is leading the pack in 2 year TDs, showing 4.65%.
• Flow in the semi government space continues, with TCV 2028 and 2029 stock in demand.

Minutes Show Fed Was Conflicted Over Size of Cut

• Yesterday, the FOMC minutes were released to the market and showed considerable debate over the size of the recent interest rate cut.
• Following last Friday’s strong U.S. jobs data, markets have repriced near-term Fed rate cut expectations, believing the central bank will ease less aggressively going forward.
• Bond yields continue to rise as the market takes into account the surprising strength of the U.S. economy and possible soft landing.
• Looking ahead markets will look to clarity via the September CPI print released overnight.