Daily Flows

• Yesterday, we saw activity across CBA, Macquarie, and NHIFC fixed income securities.
• Following the CPI release, term deposit rates above 5.00% are becoming increasingly scarce, with State Bank of India being the only provider still offering above this level.
• The 6-month BBSW is currently at 4.33%, sitting just below the current cash rate of 4.35%.

New Data Confirms the Fed’s Cautious Approach

• Overnight, US Q4 GDP slowed to 2.3% y/y from 3.1%, with the deceleration largely driven by weaker private investment and a slowdown in federal spending.
• Household consumption remained strong, continuing to support domestic demand, while housing investment rebounded after six months of declines.
• While the headline GDP number appeared weak, the overall data reflected considerable economic resilience.
• The release reinforces the Fed’s cautious, wait-and-see approach to monetary policy moving forward.