Daily Flows
- Yesterday, with interest rates rising in response to the Federal Reserve’s hawkish rhetoric, investors showed strong interest in locking in fixed rates, leading to significant flows into 6-year Federal Government Bonds.
- Today marks AMP’s final day of offering above-market term deposit rates: 5.15% for 3 months, 5.20% for 6 months, 5.15% for 9 months, and 5.10% for 12 months.
- Following the increase in reference rates, 6-month NCDs are now being offered at 5.12%.
U.S. Continues to Show Economic Resilience
- The U.S. remains in focus with the Federal Reserve’s interest rate decision early yesterday morning and the release of the final Q3 GDP growth figures overnight.
- The U.S. economy expanded at an annualised rate of 3.1% in Q3 2024, up from the previous estimate of 2.8%, marking the strongest growth this year.
- Personal spending increased by 3.7%, the fastest pace since Q1 2023, driven by a 5.6% rise in goods consumption and robust services spending (up 2.8%).
- Government consumption growth was revised higher to 5.1% (from 5%), adding to overall growth.
- The data underscores the economy’s resilience despite the Federal Reserve’s third consecutive rate cut, with only two further cuts anticipated in 2025 due to ongoing inflation concerns.