Daily Flows
- Last Friday, stronger flow in the NCD market was seen. market participants have kept 3 month margins at +50 domestically and +55 for foreign names.
- 6 month TDs attracted significant flow. Investors were able to pick up 5.55% from BBBs and 5.30% for A rated banks.
- A floating 4 year Suncorp Senior Secured bond had significant flow, with a trading margin of 94 basis points.
The week ahead
- At the start of this week some key economic indicators come out of China, including second quarter GDP.
- Markets will be watching carefully to see how weak China’s economy is. Expect a large YoY print due to base effects but a lacking quarter read.
- On Tuesday, the RBA meeting minutes is released. Whilst the last decision was mostly expected by markets and economists, incoming quarterly data will be critical for the next meeting.
- Overseas, U.S. retail sales is printed mid week. Consumer spending, similar to Australia remains resilient in the face of inflation and interest rates.
- Finishing off the week, domestic employment data is released. In the past, Michelle Bullock has expressed the need for unemployment to rise to at least 4.50%. The new RBA governor will be looking for an easing in the labour market come Thursday.