Daily Flows

• With the final period of the TFF rolling off next week, heightened demand has seen NCDs offered at +60, and term deposits are available at rates upwards of 5.20% across the curve.
• Recently, reference rates have been steady for 1-5 years, with yields increasing slightly after the RBA meeting. Going forward, quarterly inflation data will be crucial in shaping the yield curve.
• Yesterday, we saw flow to a Bank Australia MTN with the discount margin trading upwards of 3mBBSW+142.

Quiet Markets with Weaker U.S. Jobs Data

• There was not much key data released yesterday. U.S. government bond yields rose following hawkish comments from a Fed official.
• Initial jobless claims decreased by 5,000 to 238,000, down from a 10-month high, signalling a weaker labor report for June.
• Housing and manufacturing data also came in weaker, indicating a broad-based slowdown in activity.
• As we near the end of the financial year, movements in the term deposit and NCD space may be driven more by demand for funds than by data points.
• Market participants with funds to place will need to be diligent in seeking bespoke opportunities as banks look to fill funding gaps.