Daily Flows
- Today, NAB launched a 3-year floating and fixed MTN with initial guidance at 3mBBSW +73 and a YTM of 4.50%.
- Rabobank term deposits present an attractive alternative, with outright 3-year levels at 4.57%.
- Currently, 6-month NCDs are trading higher than TD levels, with an outright NCD level of 5.08% offered in the domestic market, compared to 5.00% for TDs.
RBA Keeps Cards Close to Chest, Confidence Picks up Among Consumers & Businesses
- Yesterday, the RBA minutes were released, confirming much of what has been indicated over the past months.
- The economic outlook remains uncertain, and the question of whether consumption growth will pick up continues to support a holding pattern.
- The RBA has kept its cash rate forecasts firm, with no rate cuts in sight for the 2024 calendar year.
- NAB’s business survey reflected an improvement in conditions and confidence for the month of September.
- Despite weak forward orders, the employment index is now sitting above average.
- Easing labour costs and slowing cost growth have revealed further cooling in wage and import pressures.
- The consumer sentiment index rose by 6.2%, reaching the highest reading since the monetary policy tightening cycle began.
- Anxiety around unemployment eased, and optimism regarding the 12-month economic outlook increased.
