Daily Flows & Insights – U.S. Economy Signs of Strength

Daily Flows

  • The TD curve is relatively flat from 6 months onwards. In the ‘A’ rated space 5.15% for 1 year is the highest carded offering.
  • Since the RBA’s latest pause, there has been a pick up in longer duration NCDs as investors take advantage of the steepness between 3 Month & 6 Month BBSW.

U.S. Economy Signs of Strength

  • Secondary data points this week have been driving markets in the U.S before The Jackson Hole Symposium.
  • U.S labour market was relatively stable with Jobless claims for the week of August 19 reducing by 10K to 230K.
  • July’s Chicago Fed’s National Activity Index increased, indicating the US economy in not near a recession.
  • Durable Goods core measure increased by 0.5% MoM.
  • Data keeps trickling in showing a resilient U.S. economy.
  • It is not clear whether this is a clear trend and something the Fed will consider greatly when deciding future monetary policy.
  • The Jackson Hole Symposium seems wide open as to the path that Jerome Powell can take.
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Curve Team
Jack Pedersen