Daily Flows

• Market participants who placed in the unrated space were  rewarded, with rates exceeding 5.58% for tenors over a year.
• NCD demand was strong on Friday and this momentum appears to have continued into Monday, with +55 being the required level to attract attention.
• The 5-year Aussie swaps have rallied by 10 basis points over the past week. However, it’s worth noting that margins remain wide, providing an opportunity for those looking to enter the market

The Week Ahead

• U.S. equities gained upward momentum on Friday as the market continues to embrace the narrative that the Federal Reserve has concluded its rate hikes.
• Looking ahead domestically, Australian Corporate profits are set to be released today, having declined by 13% QoQ in Q2 2023, a significant deviation from the forecasted 0.9%.
• Tomorrow, the Reserve Bank of Australia (RBA) will announce its decision on monetary policy. Market forecasts suggest that the bank will maintain the cash rate at 4.35% to avoid dampening Christmas spirits, with a hawkish stance anticipated to prevent market-induced price-setting behaviour.
• Midweek, Australian GDP QoQ data will be released, with markets predicting a 0.4% increase.
• To finish off the week U.S. employment data is released where the labour market has been slowly cooling with unemployment rising to 3.9% over the last quarter.