Daily Flows

• Major bank paper attracted flows yesterday as investors moved to lock in fixed bonds, with a Macquarie 2025 note seeing interest from several buyers.
• Floating semi-government bonds also proved popular as NSW Treasury Corp established itself as the issuer of choice for investing ADIs.
• NCD margins remain at +50 today from foreign A1 and domestic A3 names, offsetting a slight downward move in term deposit rates at the longer end.

Unemployment Out, Employment Up

• Australian employment data for February will be released later this morning, with projections of a slight easing in unemployment to 4%, down from 4.1% in January.
• The ABS is expected to announce a net increase of 40,000 jobs, up from just 500 in January, as job growth picks back up after Christmas.
• Tuesday’s interest rate decision has sparked a rally across the curve, with Australian 10 year yields down 12 bps from 2pm on Tuesday to 4.01% this morning and 5 years down 13bps to 3.66%, with traders betting on easing beginning in the second half of 2024.