- Approaching the end of the month, market participants should look to take advantage of bespoke offerings as ADIs meet their monthly funding requirements.
- There is significant demand for funds in the NCD space, with outright levels of 4.80% for 3-month NCDs.
- Outright levels at the longer end of the curve continue to stand out, with 5.67% being offered by an ‘A’-rated bank.
Israel-Hamas Ground Invasion
- Israel has initiated the “second stage” of its war against Hamas, involving a ground invasion.
- The scale of the ground invasion remains uncertain, and Prime Minister Netanyahu has warned that it will be “long and difficult.”
- Since the Hamas attack on October 7, the price of WTI oil has increased by only 3.3%, gold has risen, and equities have fallen.
- There is concern in the markets about the potential for a broader conflict to develop.
The Week Ahead
- This week starts off with domestic retail sales.
- Last month, sales increased by 0.2% MoM as consumer spending was restrained.
- Economists are forecasting an uptick of 0.5% for September.
- Later in the week, Assistant RBA Governor Brad Jones is speaking at the AFIA Conference.
- Markets will be combing this address for hints on next week’s Melbourne Cup day meeting.
- Inflation rates across Europe will be reported to the markets as the week progresses.
- In the United States, the Federal Reserve will meet to make a decision on monetary policy, where the Fed is expected to keep rates on hold.