Daily Flows

• As TD rates continue to fall an A-1+/AA- Bank’s 7-12 Month rate of 5.05% continued to be above market pricing for that term range.
• In the NCD market two-way flows are continuing with +40 margin for 3 months across the domestic space.
• Despite reduced activity in the secondary bond market, Curve successfully executed valuable transactions within the 6-year floating bond segment.
• With multiple fixed income securities maturing this week, a lot of flow has been directed to A-2/BBB+ floating rate domestic bank notes where pricing is sitting at 3mBBSW+110 for 5 years.

RBA Minutes and Powell’s Speech set the stage for Future Policy Moves

• Looking towards the near future the RBA meeting minutes on Tuesday will provide crucial insight on the central bank’s decision to maintain interest rates at 4.35% as well as prospects on the economic horizon
• Jerome Powell is poised to provide further insight into the Fed’s approach to potential interest rate reductions, offering clarity on the central bank’s strategy moving forward.
• Powell’s assessment of U.S. economic growth prospects will be closely monitored, particularly how sustainable current growth levels are amid tightening monetary policy.
• Data regarding Canada and Japan’s inflation rate is set to provide additional clarity on the progress of decreasing inflation globally.
• Equities rallied last week to notch best week of 2024 shaking off fears of recession with the S & P 500 gaining 3.9% and the Nasdaq climbing 5.3%