Daily Flows

• An interesting week for investors as ADIs position themselves for Christmas, with many looking to carry extra liquidity as a buffer over the festive period.
• An A2/BBB bank are chasing funds to plug a funding gap, and will likely be looking for the duration of the week, with rates at the 5.30% mark for 6 months and 5.40% for 12 months, which look to be the benchmark so far.
• Keep an eye on special rates over the next few days as keen banks may pay above their carded levels to secure funds.

The Week Ahead

• A big week in global markets this week with interest rate decisions for the Fed, ECB, and BoE; economists universally expect a rates hold across the board even in the event of an upside surprise in Tuesday’s US inflation print.
• Australia will see the release of various consumer & business confidence indicators from NAB and Westpac which will provide further insight into inflation expectations with the next RBA meeting not until February 2024.
• Both Westpac’s Consumer Confidence (-2.6%) and NAB’s Business Confidence (-2) prints, out tomorrow, are forecasting a decline in confidence heading into the Christmas period, with Santa perhaps a little stingier than previous years.