Daily Flows & Insights – The Week Ahead

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.
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Curve Team
Jack Pedersen