Daily Flows
- On Friday, ANZ launched 3-year and 5-year fixed and floating bonds, pricing at +68 and +81 basis points, respectively.
- Most term deposit activity was concentrated in the 3–6 month range, with 4.90% for 5 months standing out as a key level.
- The yield curve has shifted significantly since the weaker inflation print, with current market pricing suggesting a rate cut is imminent.
The Week Ahead
- This week, consumer and business sentiment readings from Westpac and NAB will be released locally.
- Both surveys are expected to show improved sentiment, likely driven by expectations of easing monetary policy.
- On Tuesday night, Fed Chair Powell will deliver his Congressional testimony, followed by the release of U.S. inflation data.
- Both events will be closely watched by markets, particularly for signals on whether the Fed will maintain a cautious approach.
- To close the week, the U.S. will release retail sales and PPI data, which could further shape market expectations for monetary policy.