Daily Flows

• The standout rate yesterday was 5.02% for 5 years. Given the recent drop in longer reference rates, this may be harder to secure today.
• Market participants seeking longer-duration deposits may want to consider these opportunities before they disappear.
• At the shorter end, a 4.80% rate for 6-month term deposits continues to attract strong flows.

Overseas Bond Sell-Off and Equity Decline Continues

• Overnight, U.S. equities extended their decline, with the S&P 500 closing down 1.8% and the NASDAQ falling 2.6%, following an initial rally.
• The ECB cut rates by 25 basis points, lowering the deposit rate to 2.5%, signalling a shift towards less restrictive monetary policy.
• Bonds sold off at the longer end, driven by Germany’s defence spending deal and concerns over how Trump’s tariff policies may impact long-term inflation.
• Looking ahead, markets will focus on Non-Farm Payrolls, seeking confirmation of recent initial jobless claims data to gauge the labour market’s strength.