Daily Flows

• Whilst CBA was issuing a 5-year bond, flow was directed to the secondary market, where Curve was able to identify better suited stock for end buyers.
• Not much change with NCD’s as foreign branch banks are continuing to keep margins around 10 basis points higher for 3 and 6 month terms.
• As term deposit rates continue to slump an A-2/BBB+ bank offering 5.15% for 5 months and 5.2% for 10 months continues to set its rates more competitively than others.

Powell Pilots the Economy Toward a Soft Landing

• US CPI comes in as expected, 2.9% YoY and 0.2% MoM aligning with analyst expectations
• This data cements market sentiment that the FED will cut rates in September, with a 25 basis point cut being the most probable outcome
• Shelter prices made up the majority of the increase rising by 0.4%, contributing to almost 90% of the monthly increase.
• Across the Tasman Sea the RBNZ has begun easing rates with a cut to 5.25% from 5.5%, weakening the New Zealand dollar against other major currencies
• Today, we turn our attention to Australia’s employment data as a key indicator of whether the RBA’s current strategy is on course or if rate cuts might need to be accelerated.