Daily Flows

• Recent ratings upgrades for BoQ and Judo have attracted significant term deposit flows to kick off the week, with the latter’s market-leading rates proving particularly popular.
• Longer paper from the newly-upgraded issuers is also attracting investors keen to lock in a pick-up in yield for no downgrade in risk-weighting.
• NCD margins of +50 remain from foreign A1 and domestic A2/BBB names today.

Rates Resist Rally, Pessimism Persists

• Aussie 10 years finished the day up 10 basis points yesterday, with US 10 years at 4.42% – their highest since November 2023.
• Australian consumer confidence took another hit this month, falling 2.4% as the Westpac-Melbourne Institute index recorded a third consecutive negative print.
• Households remain concerned about economic prospects ahead, and the consequent pressures on their finances, with pessimism heavily outweighing optimism once again in this survey as a reading of 100 is neutral.
• NAB’s business confidence indicator is out at 11:30am and will be another one to watch after teetering in positive territory in February.