Daily Flows
- A standout term deposit rate of 4.80% for 6 months from a non-fossil fuel counterparty attracted considerable flow on Friday.
- Today, a non-fossil fuel domestic ADI (A-2/BBB+) has entered the market, offering top-tier NCD and TD rates to attract funds.
- 3mBBSW +45 for 3 months remains achievable in the domestic space.
The Week Ahead
- Last week, Fed officials reiterated that they expect the inflationary impact of tariffs to be transitory, noting that U.S. goods imports account for only 11% of U.S. GDP.
- While trade realignment may cause short-term disruption, longer-term inflationary effects are expected to be limited.
- The Fed appears positioned to ease policy further over time, but is in no rush, given the strength of the labour market and inflation still above target.
- Domestically, the key focus this week is Wednesday’s Monthly CPI Indicator, which will be closely watched in the absence of other major data.
- Globally, flash PMIs from Europe, Australia, and the U.S. will be released, providing a snapshot of business activity momentum.
- In the U.S., we’ll also see durable goods orders, the final Q4 GDP print, and the PCE inflation data, all of which will be important for rate expectations.
