Daily Flows

• Toward the end of last week, significant term deposit parcels were placed in the 9-month tenor at rates of 5.00% and above.
• Despite a slight retracement in labour market data, it was insufficient to shift the yield curve. However, the gap between 3-month BBSW (4.33%) and 6-month BBSW (4.42%) continues to narrow.
• Today, standout offerings are available from the State Bank of India Branch Bank, with market-leading rates that are 10-15 basis points higher than competitors.

China Growth Sturdy Ahead of Potential Trump Tariffs

• On Friday, China released its Q4 2024 GDP report, showing the economy expanded by 5.4% YoY, surpassing market expectations of 5.0% and marking the fastest growth in 1.5 years.
• Exports recorded a double-digit rise in December, marking the ninth consecutive monthly increase and the largest volume in three years, while imports unexpectedly reached their highest value in 27 months.
• Loan demand remains relatively subdued, despite the People’s Bank of China implementing monetary stimulus throughout 2024.
• Stronger growth from China is positive news for Australia, with the potential to boost commodity export revenues and support the stabilisation of the Australian dollar.