Daily Flows & Insights – U.S Economy Continues to Grow

Daily Flows

  • With a strong demand for funds from the banking system all week, multiple bespoke opportunities have presented themselves throughout.
  • At the shorter end of the curve, 4.80% was snapped up in the BBB space.
  • A level of 5.10% has been offered for 6 months, 5.20% for 1 year and 5.15% for 2 years.
  • Market participants that have been quick to act have picked up elevated rates.
  • NCD market has a bid tone. +45 for 3 months is required to attract funds.

U.S Economy Continues to Grow

  • Last night U.S. data on revised GDP Price Index was released for Q1.
  • The U.S. economy gre by an annualised rate of 1.3% in Q1 2023, however it grew slower that the previous quarter.
  • This came in slight higher than market expectations of 1.1% and the initial estimate of 1.1%.
  • Consumer spending growth accelerated more than the market anticipated (3.8% vs 3.7%) despite persistent inflation.
  • There was also in demand which contributed to GDP via a lift in exports rising more than imports.
  • Even with this upward revision of GDP, Q1 2023 GDP growth is at its weakest since Q2 2022.
  • The Fed will keep a close eye on consumer spending as they look to navigate the narrow path of curbing inflation.
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Curve Team
Jack Pedersen