Daily Flows

• Term deposit flows were directed toward shorter terms, with an 5.05% interest rate for 6 months needed to attract.
• Exchange Settlement balances increased by $10 billion last week, reflecting a broad increase in liquidity that could influence interest rate products.
• The NCD market continues to experience two-way flows, with domestic margins remaining at +40 for 3 months.

The Week Ahead

• U.S. bond yields fell by around 8 basis points in response to weaker inflation data and acknowledgments from Fed speakers that higher yields had resulted in tighter financial conditions, reducing the need for further rate hikes.
• In Australia, the primary data point for the week will be labor data.
• Economists are forecasting a slight weakening in the labor market.
• This print has been quite volatile over the past year, so any results should be taken with a grain of salt.
• Tomorrow, RBA meeting minutes will be released, hopefully providing more insight into how seriously the RBA is taking the Q3 inflation data.
• In the U.S., retail sales are released on Tuesday night, building permits mid-week, and a speech by Jerome Powell.