Daily Flows
- Yesterday, ING launched a covered 5 year bond which set at a margin of 3mBBSW +80.
- The bid tone remained with +45 the going rate to retain 3 month NCDs.
- There is still opportunity to pick up 5.15% in the unrated space for 6-9 month NCDs.
Spring in the Step for Businesses and Consumers
- Yesterday NABs business survey showed business confidence have a notable jump for the month, rising by 7 to +5 and business conditions remained un changed around the historical average.
- The services sector shows strength, while goods-producing sectors, especially manufacturing and retail, remain weaker.
- Input cost growth, including labour and purchase costs, eased further, signalling gradual relief on the cost front.
- The survey reflects that demand in the economy remains and we continue to see gradual easing in price and cost pressures. That being said capacity utilisation remains high as demand, high input costs and limited supply growth all contribute.
- The consumer attitude continues to improve, sitting 5.4 pts below the neutral level of 100 that splits categorises optimists and pessimist’s.
- Positivity surrounding the economic outlook continues and Job loss fear drop to a 19-month low.