Daily Flows

• Yesterday, flows were mixed across NCDs, TDs, and fixed income securities.
• A standout rate included an offering of 5.16% for 6 months from an ‘A’-rated bank.
• Today, we’re seeing a level of 4.95% for 5 years. Offerings around 5.00% for 5 years have been extremely rare, so it’s no surprise considerable funds has been directed there.

U.S. CPI: A Blip in the Road

• U.S. CPI surprised on the upside, rising by 0.2% MoM (2.4% YoY), while core CPI rose by 0.3% MoM.
• Markets reacted, with equities trading lower as they assess the impact on the monetary policy outlook.
• Despite this, Fed speakers remain confident in the ongoing deflation process. In the broader context, the overall trend remains downward, though monthly blips are expected.
• It’s anticipated the next rate cut from the Federal Reserve will be 25 basis points.