Daily Flows

• New BBB-rated Heartland Bank is still offering competitive rates of 4.80% as it looks to grow its funding base. Strong interest continues, particularly from investors seeking value in the shorter end.
• The +45bp level remains the going rate for NCD funds, with solid demand keeping pricing stable.
• While this shorter week between Easter and ANZAC Day, there are still lots of opportunities available. Many issuers remain active, and clients looking to invest may find value at current levels.

Trade Hopes Improve Sentiment

• Markets found support after U.S. Treasury Secretary Scott Bessent called the U.S.-China trade stance “unsustainable.” Reports of strong progress in U.S.-India talks also helped lift sentiment.
• U.S. 10-year yields dipped 1bp, while European bonds fell 2–3bps. Trading was steady overall, with limited reaction across rates despite the 2-year auction and growth headlines.
• The IMF cut its 2025 global growth forecast to 2.8% (from 3.3%) and the U.S. to 1.8%, warning of a 40% chance of recession. The downgrade supports the case for global policy easing, including in Australia.
• In Australia, markets continue to price in up to four RBA cuts this year, backed by softer global growth signals and contained domestic inflation.