Daily Flows

• Since early December, the 6-month BBSW has faced significant downward pressure, rallying from 4.69% to 4.49%.
• This movement has understandably made AMP’s 6-month term deposit offering of 5.10% highly attractive, with the bank experiencing considerable inflows this week.
• Yesterday, CBA’s senior unsecured issuance saw substantial demand, with a total book size of $6.5 billion. Demand for senior paper over the past year has been strong, with issuing margins tightening by approximately 15 basis points.

Trump Denies Suggestions of Moderate Tariffs

• Overnight, claims that Trump’s tariff plans would be more moderate than initially signalled were swiftly quashed, as the president-elect took to social media to deny them.
• Trump reaffirmed his campaign promises of across-the-board tariffs of 10–20% on imports and up to 60% on Chinese goods.
• It is expected that Trump will face significant resistance from Congress, as the agenda poses considerable inflation and growth risks.
• Estimates suggest the move could reduce U.S. GDP by up to 1.3%.
• The tariffs are being closely monitored by domestic markets, as it has potential to fuel global inflation and impact domestic prices.