Daily Flows

• Finding NCD homes has been challenging, with most domestic ADIs receiving mid-month inflows.
• That being said, the opportunity to secure 4.88% on 6-month NCDs remains.
• In the TD space, banks have been willing to offer higher rates to retain funds, with 5.00% standing out for the 6-month term.

U.S. Retail Sales Beat Expectations

• U.S. retail sales rose by 0.1% in August, beating expectations of a 0.2% decline, following a revised 1.1% increase in July.
• Retail sales growth in Q3 looks stronger than in Q2, reflecting healthy consumer demand.
• The average monthly increase in retail sales for Q3 was 0.6% in the headline figures and 0.35% in control group sales.
• This stronger-than-expected economic data supported the USD, though there wasn’t much movement in equities or bonds. The result isn’t significant enough to influence traders’ expectations on interest rate decisions, with a 65% chance of a 50 bps cut currently priced in.