Daily Flows

• Last Friday, NAB launched a floating and fixed 5-year product with final pricing set at 4.85% and 3mBBSW +90 basis points, respectively.
• With reference rates gradually rising at the longer end, there has been significant flow in 5-year TDs, with outright levels reaching 5.07% from counterparties rated ‘A’ or higher.
• In the NCD market, a strong bid tone persists, with +45 basis points continuing to serve as the minimum level required to attract funds.

The Week Ahead

• It’s a busy week ahead, commencing with the RBA interest rate decision tomorrow.
• The Cash rate is expected to remain unchanged, with a tightening tone likely to persist as the RBA monitors persistent inflation, wage pressures, and weak productivity growth.
• Inflation rates from around the globe are set to be released throughout the week in Great Britain, Canada, the EU, South Africa, and Japan.
• Markets are anticipated to remain subdued until the FOMC meeting on Thursday morning. Similar to Australia, the Fed is expected to maintain a tightening bias as they continue to assess U.S. growth and robust job data.