Daily Flows

• An A-2/BBB+ rated green friendly bank is offering 4.50% for 5 months, attracting strong demand from yield focussed investors.
• NCD margins remain steady at +40bps over 3m BBSW, though appetite for new money is limited and the bid tone remains soft.
• Post-RBA, approximately 3bps now separates 3–6m BBSW, reflecting a flatter interest rate curve and stable short term funding conditions.

US Debt Concerns Remain in Focus

• US Treasury yields pulled back overnight after recent selling opened up more attractive entry levels — the 10-year eased 7bps to 4.53%, while the 30-year briefly hit 5.161%, its highest since late 2022.
• Fiscal concerns remain front and centre, with Trumps ‘Big Beautiful Bill’ and weaker demand at this week’s bond auctions highlighting investor caution around long-term US debt.
• Fed Reserve Governor Waller said cuts are still possible this year but flagged uncertainty around tariff policy under a possible return to higher levels as a key swing factor.
• RBA Deputy Governor Hauser addressed Australia’s economic ties with China at the Lowy Institute, striking a broadly optimistic tone on China’s near-term outlook. No monetary policy comments were made.