- Off the back of strong retail sales data, short end reference rates rose as markets take this into account for the RBA meeting next Tuesday.
- Funds were placed across the term deposit curve with market participants enjoying offers upwards of 5.70% for 1-5 years.
- Today there is an offering of 5.80% for 1 Yr & 5yr in the BBB space.
- NCD markets are holding firm at +50 for 3 months in order to retain funds.
Retail Sales Comes In Hotter Than Expected
- May Retail Sales printed at 0.7% growth MoM with the markets forecasting a -0.1% print.
- This increase in retail trade was propped up by larger-than-usual promotional sales in the retail space.
- Cafes & take away food also drove sales.
- While this figure is propped up by increased prices, it still signals demand in the economy and will cause headaches for the RBA come next Tuesday.