Daily Flows

• It was another robust day of flows yesterday with term deposits once again dominating.
• Interestingly we saw a much wider range of tenors being demanded by investors with the usual 6-12 month range widening out to a 3 to 24 month spread of maturities.
• The flatter curve is giving investors plenty to weigh up when placing funds with some opting to lock in for longer given the growing level of uncertainty around the outlook.
• After a quiet few weeks of debt issuance we have CIBC out today with a 3yr covered bond offering a pretty good margin for a AAA credit.
• We expect that the bid tone in the NCD market will remains with a few ADI’s still looking to meet a growing demand for funding over the remainder of the month.

More Than A Headline

• Employment growth was solid again in Australia for the second straight month in March with a further 53,000 jobs added against expectations of a 20,000 increase.
• It appears those who had job offers in January, as highlighted by the RBA, took a little longer to start than expected.
• Looking past the headline numbers and the result looked a little less impressive.
• The underemployment rate jumped 0.4% to 6.2% and total aggregate hours works fell over the month while the unemployment rate remained steady.
• Overall the jobs market remains strong without being so tight that it is causing too make pressure on wages.