Daily Flows
- Beyond Bank has entered the market today with a 3-year MTN, offering price guidance around +120, representing a 50bps credit premium compared to recent Major Bank issuances.
- Judo Bank continues to attract funds from ESG-conscious investors, noted for its 0% exposure to fossil fuel counterparties.
- 6-month NCD outright levels of 4.72% were offered yesterday by ‘A’-rated foreign branch banks, providing competitive short-term opportunities.
PPI Comes in Below Market Expectations
- US data releases were mixed, with headline PPI and core readings falling short of expectations, but several key PPI components feeding into core PCE inflation rose sharply.
- Hospital PPI prices increased by 0.6%, recovering from an unusually low 0.2% rise in January, while auto insurance PPI surged 1.2% and domestic air transport prices rose 1.0% in unadjusted terms.
- Final demand goods prices increased by 0.3%, marking the fifth consecutive monthly rise, contributing to persistent inflation pressures.
- A 1.7% jump in final demand food prices drove the increase, with significant price spikes in chicken eggs adding to cost pressures.
- Despite softer headline figures, underlying inflation risks remain, reinforcing expectations that the Fed will remain cautious before committing to rate cuts.
