Daily Flows & Insights – Quiet Markets Ahead of U.S. CPI

Daily Flows

  • Yesterday, market participants focused on placements around the 6-month tenor, receiving an elevated level due to increases in reference rates.
  • Today, a Green-friendly BBB+ rated ADI has come to the market with a standout rate of 5.50% for 12 months.
  • NCD margins have climbed to +50 for 3 months as banks are looking to attract funds.

Quiet Markets Ahead of U.S. CPI

  • Markets remained subdued ahead of crucial U.S. inflation data.
  • One area of concern is the Friday night deadline to fund the government for the next 12 months (Saturday 4 pm Sydney time).
  • Passing substantive legislation seems unlikely, and a Continuing Resolution (CR) might be the temporary solution until early 2024.
  • The New York Fed’s survey of consumer expectations revealed changes in various economic indicators.
  • The 1-year inflation outlook eased by 0.1% to 3.57%, and the 5-year inflation outlook eased by 0.1% to 2.72%.
  • Employment expectations decreased by 1.5% to 38.6.
  • Domestically, markets remain optimistic due to positive economic growth talk fuelled by strong population growth.

 

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Curve Team
Jack Pedersen