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.