Daily Flows

• Today, 5.10% is being offered in the BBB space for 1 year term deposits.
• This level is is a great chance to lock in high yield in spite of a flattening yield curve.
• Last Friday, term deposit flows were directed to 6 month tenor, with a standout rate of 5.00% being offered by a BBB+ ADI.
• +45 was the 3 month market level to attract funding in the NCD market.

The Week ahead

• U.S. Equities markets finished last week mixed, as uncertainty remains in the market around U.S. debt ceiling negotiations.
• Domestically, RBA minutes is released this Tuesday. With the SOMP released recently there might not be too much extra revealed in this print.
• Mid week, wages and employment data is printed. Both these prints will shape the near term discussion for the RBA meeting in June.
• Persistent tightness in the labour market will cause headaches for the RBA who are trying to avoid a feed back loop between wages and prices occurring.
• Overseas, U.S. retail sales is released on Thursday. However the debt ceiling negotiations is driving market sentiment and uncertainty.
• It will be interesting to see how the FOMC approach the next meeting. If no resolution over the debt ceiling has been reached another hike would be a challenging decision.