Daily Flows & Insights – U.S. Inflation

Daily Flows

  • A BOQ floating bond, 2026, gathered flow yesterday, with market participants able to pick it up at DM of +105.
  • 5 year term deposit offerings continue to be added to investors portfolios as they start to consider the declining interest rates over the next 5 years.
  • Approaching mid-month, market participants should expect an ease in liquidity as mid month inflows approach.

U.S. Inflation

  • In September 2023, the US inflation rate held steady at 3.7%, defying expectations of a slight decrease to 3.6%.
  • The steadiness was due to energy prices falling by 0.5%, offsetting slower inflation in other categories.
  • The core Consumer Price Index (CPI), excluding food and energy, slowed to 4.1%, the lowest since September 2021.
  • Monthly consumer prices increased by 0.4%, down from 0.6% in August but higher than the expected 0.3%.
  • The core rate remained unchanged at 0.3%.
  • It’s important to note that monthly CPI data can be volatile.
  • This report will cause some concern amongst fed officials but clarity will be sought through further data such as the PCE deflator data which tends to be lower than CPI.
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Curve Team
Jack Pedersen