Daily Flows

• Yesterday, term deposit activity was focused on the 6-12 month tenors, with market participants enjoying offers of 5.10%.
• Any Semi-Government Floating offerings have been snapped up quickly as of late. However, volume is still available today.
• A bid-tone is beginning to form in the NCD space as we approach the end of the month.

Softer Data In the U.S. But Markets Look Ahead

• January 2024 saw a significant 6.1% month-over-month drop in durable goods orders in the US, surpassing expectations and marking the largest decline since April 2020.
• Transportation equipment was the main driver of this decline, with a 16.2% decrease, notably due to reduced demand for nondefense aircraft and parts as well as motor vehicles and parts.
• U.S. consumer confidence also fell as consumers digested the future outlook of the economy, the job market, and financial conditions.
• While this data was softer than expected, there was little reaction from markets.
• GDP and PCE later on in the week will remain in the spotlight with the potential for substantial movements.