- Westpac has lunched a 3YR Senior Unsecured MTN with a Fixed and Floating tranche.
- The initial price guidance is 3mBBSW + 82 and SQ ASQ + 82 (indicative yield of 4.88%).
- The TD curve has peak outright offerings from 9-12 months.
- Although 2 – 5 year offerings are lower, they have attracted flow as market participants consider future interest rate expectations.
- A standout NCD margin of +65 for 3 months from a foreign branch ADI continues to attract flow.
U.S. Downgrade & ADP Employment
- Two data points come out of the U.S. which may have influenced market movement: Fitch downgrading of the U.S government & ADP Jobs data.
- Fitch downgraded U.S. credit rating from AAA to AA+.
- Fitch agency citied governance and fiscal challenges as the points of concern.
- ADP Employment change came in well above forecast at 324K (markets forecasted 210K).
- Markets usually do not trade heavily of this print however it may have given a chance for equities to retrace the current run.
- The non-farm payrolls released later in the week should provide more clarity on the state of the U.S. labour market.