Daily Flows

• Market participants in search of yield have been directing NCD flow to foreign branch banks who price wider than domestic names.
• An ‘A’ rated foreign branch bank offering +45 for 3 months in comparison to +40/+45 for 3 months from BBB domestic banks.
• A rate of 5.40% for 11 month TD was offered for the rolling of funds in the BBB space.

U.S. 10 Year Treasury Bonds Reach Decade Highs

• The U.S. 10-year Treasury bonds have hit decade high levels at 4.35%.
• U.S. bonds continue to selloff as yields take into account that narrative that rates will need to stay higher for longer as pockets of stronger-than expect growth continues to come in.
• All eyes will be on Powell this week to see if he gives any indication on future monetary policy.