Macquarie’s recent issuance is trading at 10 points wider than similar major bank securities.
For ADI’s this is a 10 basis point pick up in return for the same risk weight application.
A term deposit rate of 5.20% for 2 years gathered significant flow sitting above market in the BBB space.
It represents a chance to lock in a ‘high’ yield. Longer term interest rates have significant downward pressure as markets take into account economic slowdown and an easing of interest rates.
Oil Prices Hitting New Highs for 2023
Markets have been quiet as investors wait for the FOMC meeting later this week.
Brent crude is near a 10-month high due to ongoing supply constraints.
Saudi Arabian Energy Minister expressed uncertainty about Chinese demand.
OPEC have maintained their unilateral production cut with a focus on stabilising oil markets and global security.
This intention was contextually vague however, with no price range stated at all.
Declining Russian exports and stronger China exports continue to contribute to market tightness.
Changes in oil prices can have a direct/indirect impact on inflation as it feeds into expectations, Central bank outlook and global dynamics.
It will be an area of concern for Central Bank’s globally and be taken into consideration for future monetary policy decision.