Daily Flows & Insights – Mixed Result From U.S Payrolls

Daily Flows

  • Flows were mixed on Friday, with market participants enjoying higher outright term deposit rates off the back of rises in reference interest rates.
  • Today, 1 year levels of 5.80% are being offered in the BBB space.
  • NCD margins for 3 months have subdued a little, with +50 for 3 months the going rate for new funds.

Mixed Bag From U.S Payroll Data

  • On Friday night, U.S. Non Farm Payrolls came in at 209K. This was weaker than the forecasted level if 250K.
  • Average hourly earnings surpassed expectations at 0.4% MoM.
  • This print is inline with its current downtrend excluding May (which can be attributed to seasonality).
  • Hiring in the services sector has slowed with the hospitality and leisure leading this trend.
  • This print was a mixed bag and may nor alter the Feds current outlook too much.
  • The market is still leaning towards a hike next week with 22 basis points currently priced in.

The Week Ahead

  • Domestically this week, Consumer Confidence and Business confidence is released.
  • Mays business and consumer confidence prints had unexpected results, it will be interesting to see if this trend continues.
  • On Wednesday Philip Lowe is addressing the Economic Society of Australia.
  • This speech will focus on the changes that will be implemented on the RBA.
  • Overseas, U.S. inflation data is released later in the week. This print will be watched closely ahead of next weeks Fed meeting.
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Curve Team
Jack Pedersen