- 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.