Daily Flows

• Great Southern Bank’s (BBB) 2.75 year medium term note, maturing 23 October 2026, has been launched this morning with price guidance in the +165bps area and healthy early interest.
•  We saw plenty of activity in the NCD space yesterday with a number of domestic A2 issuers open to funds. Margins remain around the +45 mark with attractive opportunities available.
• A1 names saw inflows yesterday, with a rate of 5.00% for 3 year deposits and 5.15% for 5 year deposits attracting interest from an A1/A name. 

Temperature Check for the Aussie Consumer – Households Feeling the Post-Christmas Pinch?

• Westpac’s consumer confidence survey is out later this morning following pessimistic results in December. Business sentiment reached an 11 year low last month on the back of falling forward orders & capacity utilisation.
• Consumer confidence will be one to keep an eye on, with a new year unlikely to raise spirits among households feeling the post-Christmas pinch.
• Markets feel the RBA will take a steady hand to the February meeting, expecting a hold to start 2024, with any move likely to be downward at this stage.
• Yields are up across the curve this morning, with the Aussie 10 year up 4 basis points to 4.12% amidst little action from the US overnight with Martin Luther King Day shutting markets.