Daily Flows
- The A rated ADI’s have been consistently showing the top market rates, so we have seen a lot of flow into Rabobank, NAB and ING this week.
- Domestic ADI’s are lowering their margins as their appetite decrease, but we are still seeing foreign names issuing NCD’s at +50bp.
- With excess liquidity in the market, we are seeing opportunities start to close off, so if there is a rate that stands out, we suggest locking it in before that closes off
Stronger than Expected Employment
- The highly anticipated employment data for June failed to give any clarity on the outlook ahead of the next RBA meeting in August.
- Total employment growth was stronger than expected (50.2k vs exp 20k). However the unemployment rate rose 0.1% to 4.1% after the participation rate edged higher.
- The focus will now shift to the quarterly CPI release on the 31st of July ahead of the RBA’s August 6 meeting
- Currently the market is still pricing in little chance of hike at the meeting but CPI could sway the decision