Daily Flows

• Yesterday Macquarie bank issued a 3 year floating and Fixed MTN.
• The security set with a price of 3MBBSW +85 for the floating and the fixed a YTM of 4.946%.
• 5.20% for 1 year continues to be the going term deposit rate to attract flow.
• NCD margins are climbing to +50 for 3 months with banks having to out bid each other to retain or win funds.

Philip Lowe Farewell Speech

• Yesterday, Philip Lowe had his closing remarks with his final public appearance as RBA Governor at the Anika Foundation.
• Over his term as Governor, Lowe noted the three economic challenges the RBA had to navigate:
  • A period of inflation below target
  • A global pandemic
  • And the highest inflation rate in more than 30 years.
• He stressed that having credible frameworks for economic policy, aligning monetary with fiscal policy was crucial to navigating these head winds.
• He also noted  the need to lift productivity growth in order to raise Australia’s standard of living.
• The reigns will now be passed onto Michelle Bullock to see out returning inflation to the target band.