Daily Flows
- Competition for term deposit funds saw a level of 5.22% locked in by investors on Thursday.
- Last week, keen investors were able to identify fixed senior secured lines of stock, paying margins +40 over NCDs of the same credit risk.
- NCD margins remain at +40/+45 in the domestic space. As the markets return to full capacity post Australia Day, we may witness an increase in demand for funds and a widening of margins.
The Week Ahead
- In December 2023, the year-on-year PCE price index in the United States rose by 2.6%, mirroring the rate observed in November and aligning with market forecasts.
- It’s a quiet start to the week with no significant data points today. Tomorrow, domestic retail sales are released, with the markets expecting a negative print after strong metrics in November. As Black Friday gains more popularity, historical trends continue to be tested, with November sales growth.
- Throughout Europe, GDP and inflation data are released midweek.
- Australian CPI comes out on Wednesday, with markets forecasting 4.3% YoY, down from 5.4% YoY.
- Finishing off the week, the U.S. FOMC is scheduled. It is expected that the Fed will tread carefully, maintaining a data-dependent approach and trying to avoid price-setting behaviour from the markets.
