Daily Flows

• TD activity in the BBB+ space continues to be elevated, with offerings of 5.00% for 6 months receiving flow.
• At the shorter end of the curve an ‘A’ rated ADI continues to offer 3 month term deposit rates upwards of 4.60%.
• There has been a flurry of new issuance recently, presenting a great opportunity for investors to lock in some longer duration investments. Trading in the secondary market is a chance for those who missed out to pick up stock.

U.S. Inflation Remains Sticky

• Last night, U.S. headline CPI rose by 0.4% for the month of April, with the core also up 0.4% as expected.
• The Inflation rate remained elevated for year on year at 4.9%, however this is the lowest yearly print since April 2021.
• Food prices rose at a slower rate (7.7% vs 8.5% March) and shelter costs slowed for the first time in two years.
• Job growth remains strong in the U.S. with the unemployment rate well off the FOMC’s end of year forecast of 4.5%.
• This paired with recent sticky monthly inflation print suggests that the Fed may need to deliver one more 25 basis point hike come June.