Daily Flows & Insights – Positive Signs From China, Still Challenges Ahead

Daily Flows

  • On Friday, the standout term deposit deal was 5.15% for 2 years offered from an ‘A’ rated counterparty.
  • There is balanced flow in the TD and NCD space. This has seen stable levels offered all of last week with 5.10% for 6 months and 5.25% for 12 months.
  • NCD margins remain around +45 for 3 months.

Positive Signs From China, Still Challenges Ahead

  • There was positive news on Friday coming from China, with retail sales hotter than expected, growing 4.6% in August (expected 2.5%).
  • This was driven by summer holidays and related spending categorises.
  • Despite the positive uptick in spending, China still faces economic challenges, including declining exports, a prolonged property market decline and strained relations with the U.S.
  • Economists are expecting more stimulus to come out of the Chinese government and hopefully drive positive data in the coming months.


Quiet Week Ahead Domestically

  • This week many Central Banks have interest rate decisions to make, including, The U.S., Great Britain, Brazil and Japan.
  • The U.S. is expected to hold interest rate with 10 basis points hiked in from now and until December.
  • England is facing rising unemployment and weak economic growth. The Bank of England are still forecasted to raise interest rates, prioritising the fight against inflation.
  • RBA minutes is released on Tuesday, there are no expected surprises but it is one of the only major domestic data points this week.
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Curve Team
Jack Pedersen