Daily Flows

• Stock from a client liquidating a number of lines from their portfolio proved popular last week, with senior and subordinated bank paper from issuers such as Newcastle Greater, IMB, and Great Southern Bank sold via Curve facilitating client-to-client trades prior to the stock hitting the street. Several lines remain available this morning.
  
• A domestic A2 issuer continues to set the pace in the NCD market this week with +55 available to investors.
  
• Term deposit rates from one foreign A1 branch bank have been at 5.31% for 12 months for middle market investors, with one unrated name at 5.30% today.

The Week Ahead

• An interesting week of data points ahead for the Australian market with monthly inflation the highlight this week. Economists expect a slight pullback to 3.4% YoY for the year to April, down from 3.5% last month, amidst a general softening trend across recent inflation prints.
  
• Elsewhere, the run of economic releases begins with monthly retail sales tomorrow, with building approvals on Thursday and private sector credit out on Friday.
  
• US inflation data out on Friday will be closely watched around the world, with the Fed’s preferred inflation gauge – the core PCE deflator – expected to cool slightly to 0.2% on March levels of 0.3%.
  
• Expected annual inflation of 2.8% for the year to April would match March levels, with money markets delicately poised heading into June’s meeting; a first Fed cut is currently priced in for December.