Daily Flows

• Since the hotter than expected monthly CPI print, 3MBBSW jumped 6 basis points and has remained around 4.44.
• It seems this level may not move until further clarification on the outlook is provided either through upcoming employment data or the Quarterly inflation print.
• Yesterday, the highest rate locked in was a 1 year term deposit offering from an ‘A’ rated bank at 5.36%. In the NCD space margins are holding at +45 with banks happy to offer this to retain their funding.

Powell Acknowledges Inflation Progress

• The markets have digested the Trump Assassination attempt and election of his Vice President, JD Vance.
• U.S. equities have risen, as certainty to the political outlook has firmed slightly and long-term Treasury yields rose.
• This movement in bonds could be attributed to a Trump tenor may see be inflationary in the long-term.
• Overnight, Powell also helped the equity rally, stating that inflation is on its way and they are now considering the risk to a slowing economy.
• Going forward they will monitor the labour market to make sure unnecessary gains are not lost.
• In Australia, we are still waiting on a downward trend. Any signs of easing in the labour market and inflation will be welcomed by markets and the RBA