Daily Flows

• Last Friday, significant flow was directed to ‘A’ rated counterparties who are offering competitive term deposit rates from 1 – 5 years.
• The NCD market has cooled and the highest domestic carded rate is now +50.
• In the credit space we saw trading in the Floating Newcastle Greater Mutual line, maturing 02/14/2029.

The Week Ahead

• The dramatic failed assassination attempt on Trump may see markets with a risk off appetite, flocking to safe haven assets and driving down the yield on the current risk free curve.
• Whilst PPI inflation in the U.S. came in hotter than expected, markets seem sold that Fed rate cuts will happen this September.
• In the U.S. retail sales is released. Weak inflation and lower prices are expected to weigh down this print down and growth in household income may counter this.
• In Australia, the main event will be the employment figures on Thursday. Currently the RBA is caught between a rock and a hard place.
• The foundations of the economy are rocky, yet they need to tame inflation to avoid long term damage. They will be looking for signs of cooling in the labour market so they may not have to inflict further pain through tighter monetary policy.