Daily Flows

• Last Friday, the demand for funds was met by market participants, with multiple banks attracting flow and offering rates upwards of 5.20% for 6 months and 5.30% for 1 year.
• Typically, the EOFY brings increased demand for funds, which may be heightened this year as cheap funds are drained from the system via TFF repayment.
• Market participants with funds to place should seek out bespoke rates and specials when available.

Political Uncertainty in France and The Week Ahead

• Last week, French bond yields decreased, and their spreads compared to other European bonds widened as markets expressed concern over the uncertain outlook.
• ECB President Lagarde avoided directly answering questions about the French election and its impact on markets but made it clear that the bank is confident they will achieve their inflation target.
• Domestically, we have the RBA meeting to look forward to. A pause is expected, with the next hike priced in by markets not until next year.
• In the U.S., retail sales are released mid-week, with markets expecting a monthly increase of 0.2% MoM after a 0% reading previously.