Daily Flows
- Last week, investors picked up a 5.20% rate from an above-market offering by State Bank of India (A-3/BBB-).
- Rabobank’s primary issuance priced at 3m BBSW +65 for 3 years and +85 for 5 years.
- Markets may be quiet today as participants await clarity post-RBA meeting.
U.S. Retail Sales & The Week Ahead
- Last Friday, U.S. retail sales fell a surprising -0.9% (vs. -0.1% expected), potentially driven by severe weather and wildfires weighing on consumer spending.
- US Treasuries rallied, reversing post-CPI losses, as 10-year yields fell 5bp following the larger-than-expected 0.9% m/m drop in January retail sales.
- US financial markets will be closed on Monday for Presidents’ Day, with bond market focus on whether weak retail data signals a broader Q1 slowdown.
- Markets are on edge ahead of tomorrow’s RBA meeting, where a monetary policy decision will be announced. A rate cut is 87% priced in.
- The accompanying press conference will be analysed closely, as markets attempt to gauge the level of hawkishness/dovishness.
- Later in the week, the FOMC minutes will be released, along with Australian labour market data.