Daily Flows

• Demand for term funds has increased, and to the benefit of investors, term deposit rates have reached 5.17% for 5-year tenor.
• Bond flows were mixed yesterday, with rates upwards of 4.35% for 5-year semi-government fixed bonds locked in and floating non-major A-rated paper trading around +65 basis points for a 4-year term.
• NCD rates above 5.00% are achievable for investors opting for a 6-month term.

Oil Prices Drop Upon The Sparing of Iranian Oil Facilities

• Israel conducted retaliatory strikes on Iran that did not target oil facilities.
• With a high uncertainty premium recently priced into oil, this development has led to some of that premium unwinding.
• Oil prices dropped by 6.1%, with Brent crude priced at USD 71.42 a barrel.
• As domestic quarterly inflation figures are released tomorrow, investors will closely monitor the trimmed mean inflation rate, which excludes volatile items.
• This focus means much of the global price decline from lower oil prices will not be a primary factor, allowing analysis to centre on persistently high domestic inflation.