Daily Flows

• Those that were quick to act snapped up 5.00% TDs for 6 month and 1 year terms in the BBB space.
• With reference rates settling, it seems today may be the last opportunity for 1 year 5% term deposits for the week.
• The NCD market had flow directed to shorter term, with two way flows at +40 for 3 months.

US FED Hikes Rates

• The FOMC last night decided on a further 0.25% hike in the US as expected, following on from a 0.25% increase by the RBA here in Australia earlier in the week.
• They also removed guidance from its statement that further hikes are anticipated, which saw bond yields fall as the idea of this being the final hike has started to price in.
• However, they noted that future decisions will be dependant on economic data and market conditions with a tightening bias.
• Eyes now point towards tonight where the ECB will also announce its interest rate decision, where it’s expected to also announce a 0.25% rate hike given large core inflation numbers.