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.