On Friday, Police Bank issued $65 million of a 3-year floating MTN at a discount margin of +155.
Investors favoring the short end of the curve have been able to pick up 5.10% for 3 months from environmentally friendly (Green-Friendly) names.
Those sitting on cash should look to place funds before mid-month, as cyclical inflows tend to quash excess demand and dampen outright TD and NCD levels.
Moody’s Downgrade
Moody’s Investors Service signaled a potential downgrade of the US credit rating due to wider budget deficits and increased political polarisation.
Fiscal deficits are expected to remain large, significantly weakening debt affordability, especially if measures to reduce spending or boost revenue are not implemented.
Moody’s is the only major credit rating agency with a top rating for the US, as Fitch Ratings downgraded the government in August.
The Week Ahead
This morning, Marion Kohler, Acting Assistant Governor of the RBA, speaks at the UBS Australasia Conference.
On Tuesday, Consumer confidence and business conditions are released to the market. The November rate hike may feed into confidence levels, reversing recent upward trends.
The main event of the week will be domestic wages and jobs data. The central bank now predicts the unemployment rate to average 3.8 percent in the fourth quarter.
In the U.S., CPI is released near the back end of the week. The markets are forecasting a rise of 0.3% MoM with stable energy prices, declines in vehicle prices, and dampened consumer demand expected to influence the print.