Daily Flows

• With end of month, there has been ample opportunity to pick up a term deposit rate of 5.20% for 6 – 12 months.
• NCD margins were offered yesterday at +50 but have since calmed, with the level only offered in the BBB- space.
• Today there is offerings in Heritage and Peoples Choice Floating Note 2027 at an indicative level of +130 Discount Margin.

Swiftflation Not Enough to Move the Needle

• Australia’s Consumer Price Index (CPI) remained steady at 3.4% in February 2024, in line with the previous two months but below market expectations.
• Inflation rates for housing and health remained stable, but there were increases in transport, education, and clothing and footwear prices.
• Domestic holiday prices experienced a larger-than-expected decline of 9.0% month-on-month (m/m), possibly due to reduced travel activity following the conclusion of peak travel during school holidays, despite anticipated stimulation from Taylor Swift concerts.
• Excluding volatile items and travel, the CPI rose by 3.9% in February, indicating ongoing inflationary pressures outside the Reserve Bank of Australia’s target range.