Daily Flows

• In the NCD space, heightened demand has seen NCD margins trickle back to +60 for 3 months. Outright level is just below 5.00%.
• We have seen flow directed to the Semi FRN line, NSWTC 29s with margins trading above 3mBBSW+20.
• An ‘A’ rated domestic issuer that does not invest in fossil fuels is offering 5.15% for 7 months.

U.K. CPI falls into the Target Band

• It was quiet yesterday, with not much domestic data and the U.S. off on holiday. In the U.K. YoY inflation rate slowed to 2.0%, the lowest since July 2021.
• The slowdown was mainly driven by goods with slow progress in the services composition.
• The Bank of England are meeting to decide on monetary policy today but is expected that they will hold. Markets are predicting a 80% chance that they will cut rates in September.