Daily Flows

• Yesterday, SMBS launched a 5-year floating bond with final pricing at +88. Market participants saw value in Newcastle Perm’s floating bond maturing in February 2029, gaining an extra 40 basis points compared to the launch.
• In the NCD space, flows have been directed to foreign branch banks where investors can pick up a strong yields.
• Today, a jarring employment print may move the yield curve, considering its importance for the upcoming RBA meeting.

Mixed Markets and Australian Employment

• Markets were mixed yesterday, with U.S. equities retracing as investors considered U.S. trade conflicts with China and their impact on microchip shares.
• Although there was stronger data across the industrial and housing sectors in the U.S., it wasn’t significant enough to influence large movements in the market.
• Today, employment data for last month is being released in Australia.
• Market consensus is that the unemployment rate will remain at 4.0%.
• The RBA will have a watchful eye on this print and its intricacies to discern how inflationary the current labour market is.