Daily Flows

• An A-1/A rated bank yesterday led with 4.42% for 6 months, providing a premium over all other A-rated names in the market.
• AMP continues to lead the very short end with its 31-day notice account offering 4.50% (corporate) and 4.30% (financial). Steady inflows persist, though the 30bps bonus may soon no longer be added.
• For NCDs, before mid-month top-ups come in next week, appetite for funds is still there with +45 over 3m BBSW.

US CPI Comes in Soft

• US CPI rose 0.1% in May (vs. 0.2% expected), bringing the annual rate to 2.4%. Core CPI also lifted 0.1% (vs. 0.3%), with the yearly figure holding steady at 2.8%.
• Discretionary services inflation, including airfares and hotel rates, was soft—possibly reflecting weaker demand. Broader services CPI remained subdued, with another month of slowing rent inflation.
• Interestingly, no clear signs of tariff-related pressure appeared in this month’s figures despite recent headlines.
• US 10-year Treasury yields fell 5bps to 4.42% after a well-received US$39bn bond auction and tame inflation data, building the case for Fed rate cuts later this year.
• Domestically today we have CBA’s Household Spending Insights which will shed light on domestic consumer momentum, while RBA’s David Jacobs is also set to speak at the Australian Fixed Income Forum.