- Offerings on semi-government floating bonds received considerable flow. There is still volume available today for those who missed out.
- Demand for funds has led to bespoke offerings becoming more common. Market participants looking to invest have been rewarded with the highest rates in the market across most terms.
- NCD margins are sitting at +45 for domestic names.
The Week Ahead
- It was a quiet weekend for markets, with most key economic indicators already released. Oil prices rose by 4.1% on Friday amid rumours that OPEC+ is considering further supply cuts.
- Overall, oil has remained on a significant downtrend for the last quarter, which may provide relief for cost inputs and overall global inflation.
- Looking ahead, it is a quiet week domestically. On Tuesday, the RBA meeting minutes are released, accompanied by multiple speeches.
- In the U.S., the FOMC minutes are released, durable goods orders are printed, and S&P PMI flash composites come out at the end of the week.
- Demand for funds in the banking system seems to have picked up as we near December.
- It appears that banks are looking to shore up funds before a holiday rush and avoid paying extra when liquidity is tight.