Daily Flows
- Activity on Friday was mixed, with 3-month outright NCDs trading at 4.52% and 3-month term deposits at 4.75%.
- Those chasing yield continue to direct funds to State Bank of India (A-3/BBB-), which is offering above-market term deposit rates.
- 6-month BBSW is now at 4.21%, down from 4.48% at the start of the calendar year.
The Week Ahead
- Equities ended last week with a rally, while bond yields fell. The U.S. continues to act unpredictably, with tariff discussions and geopolitical uncertainty fuelling risk-off sentiment.
- It’s a busy week ahead, both domestically and internationally. Today, we have ANZ Job Ads, a data point that provides forward-looking insight into labour market conditions.
- In the U.S., tariffs on Mexico, Canada, and China are set to begin on Tuesday, alongside the release of the ISM Manufacturing Survey.
- Domestically, we will be digesting retail sales data and the RBA Meeting Minutes, which could provide further insight into the latest monetary policy decision.
- To close out the week, domestic GDP will be released, with markets forecasting a 0.5% QoQ increase, driven by improvements in household consumption.
- The ISM Services Index is due on Thursday, and to finish the week, U.S. Non-Farm Payrolls will be released on Friday night.
