Daily Flows

• On the final day of the financial year, many banks will look to fill remaining funding gaps as investors complete last payment runs—prompting some more flexible pricing.
• Heartland Bank (A-3/BBB) offering 4.40% for 6 months remains a standout for investors chasing yield in the short end.
• NCD demand remains strong, particularly for new money, with +45bps over 3m BBSW still marking the benchmark for A-2 domestic names.

US-China Trade Progress Lifts Sentiment

• Risk sentiment improved following progress on a US-China trade deal, with data further supporting Fed rate cut expectations. US Treasury Secretary Scott Bessent confirmed a resolution with China on rare earth mineral shipments.
• Bond yields ended lower over the week, despite a small Friday rebound. The US 10-year Treasury yield fell 10bps over the week to 4.27%.
• US personal income unexpectedly fell 0.4% in May (survey: +0.3%), while spending dipped 0.1%. Core PCE rose 0.2% m/m (survey: +0.1%), lifting the annual rate to 2.7% from 2.6%.
• This week in Australia, Retail Sales (Wednesday) and the Household Spending Indicator (Friday) will gauge consumer momentum. In the US, non-farm payrolls take centre stage.