Daily Flows
- With seasonal inflows, banks eager to diversify welcomed TD funds from a range of sectors, offering level of 5.10% for 9 months.
- The larger banks continue to lead in the TD space, consistently offering carded rates to the market.
- We continue to see two-way NCD flow, with margins potentially tightening as of late.
RBA Deputy Governor Hauser Discusses Surprising Strength in the Labour Market
- Yesterday, Deputy Governor Hauser spoke at a CBA conference during a Q&A session, where the labour market and the RBA’s interpretation of data were pertinent themes.
- With the ABS employment report showing significantly stronger results for September, Hauser noted some surprise at the robustness of job gains but stressed that the low unemployment level aligns with their goal of maintaining employment gains.
- The labour market continues to surprise on the upside, driven by contributions from the public sector and non-market jobs.
- Over half of Australia’s job growth over the last year has derived from the non-market (government-aligned) sector, with the NDIS contributing and growing at 20% annually in recent years.
- It’s no surprise that public demand hit record highs at 27.3% of GDP in Q2 2024, with no signs of slowing down as the government continues to increase spending moving forward.
- This growth in government-aligned jobs and GDP is central to the rates conundrum and could significantly delay any rate cuts in the near future.
