Daily Flows

• Flows were quiet on Friday as the end of the month approached. Standout NCD levels were picked up in the foreign branch space, with yields upwards of 4.90% for 6 months.
• Given the recent CPI data, most rates have dropped below 5.00%. However, an ‘A’-rated bank is still leading the market with 4.95% for 5-year terms.
• With the RBA cash rate expected to fall in the next six months, most investors are looking for opportunities to lock in long-term fixed exposures, ensuring they take advantage of any elevated rates in the curve.

The Week Ahead

• The week begins with inflation data from the EU, where the year-on-year level is expected to come in at 2.5%.
• Throughout the week, the US will release ISM data along with JOLT’s job openings for December.
• The labour market remains a key factor for the monetary policy outlook and will be closely monitored by the Fed and markets.
• In Australia, the Balance of Trade report is due on Thursday. With potential disruptions to global supply chains from tariff introductions, this figure may attract closer market attention.
• Lastly, Non-Farm Payrolls will be released on Friday night, with expectations of a slight decrease to 205K, down from 256K.