Daily Flows

• Today we are seeing the longer dated mutuals being offered with the Newcastle Perm Feb 2029 and the Hertiage Peoples Choice 2027 FRNs available.
• Foreign Branch NCDs are becoming increasingly enticing for those chasing yield with some A1/A names holding margins around +50, as domestic names reel in their margins to +40/45.
• A domestic BBB+ ADI is particularly keen on 18mth funds showing 5.20%.

Slow start to the Week

• It was a quiet start to the week with the political jostling in the US still dominating the headlines
• Markets reversed their recent moves with equities catching a bid and yields easing back a touch
• As we keenly await CPI next week ahead of the RBA’s August meeting expectations for rate hike has edged up a touch
• There is currently an outside 20% chance we see another hike in the cash rate with a cut still favoured as the next move for the RBA.
• Currently a cut is priced in for mid next year.