Daily Flows

• The 5-year term deposit offering of 4.95% has been attracting significant flows to start off the week.
• At the shorter end, the opportunity to lock in rates above 5.00% remains available from some issuers for 6 and 12 months.
• It appears that demand for funds is creeping back into the banking sector as seasonal loan growth kicks in.

Quiet Markets with U.S. Closed Yesterday for Columbus Day

• Markets were quiet yesterday with the U.S. closed for Columbus Day.
• Heading into the U.S. elections, activity may remain subdued as market participants wait for clarity around the political outlook before positioning.
• Fed speaker Kashkari noted that gradual interest rate cuts may be appropriate given the current outlook, while speaker Waller expressed caution about cutting too quickly, given the strong U.S. economy and labour market.
• The strong labour markets in both the U.S. and Australia continue to defy economic fundamentals. Inflation is tracking down, but employment gains have remained, benefiting society.