Daily Flows

• A BBB+ rated green-friend bank is offering 4.50% for 5 months, drawing steady demand from investors chasing yield and fossil-fuel free exposure.
• Rabobank (A-rated) still leads on 1–5 year TDs, with rates staying well above major banks.
• A foreign A-rated branch bank ended last week offering +53bps over 3m BBSW — keeping a solid margin over domestic names and attracting short-term interest.

Trade Tensions Hit Sentiment

• Markets turned risk-off Friday after Donald Trump proposed 50% tariffs on European goods, reigniting global trade worries.
• Trump said talks with the EU are “going nowhere” and threatened to impose the tariffs from June 1. His team called it a tactic to pressure European officials, while the EU signalled it’s open to a deal by July 9.
• The news hit bond markets, with US 10-year yields falling 4bps to 4.51%, though they still ended the week up 6bps amid ongoing fiscal concerns.
• In Australia, this week focus shifts to April’s Monthly CPI (Wednesday) and Retail Sales (Friday) — key inputs for the RBA’s next move.