Daily Flows
- There was significant two-way flow in the NCD market with multiple domestic A-2/BBB+ issuers.
- Market participants quick to act have been able to pick up attractive longer NCD rates, with outright six-month levels above 5.05%.
- Term deposits were minimal, with most placements centred around the six-month period, where 5.00% can be easily locked in.
Warm Weather Prompts a Pick-Up in Retail Sales?
- Yesterday, retail sales for the month of August rose by 0.7% MoM, considerably higher than market expectations of 0.1% MoM.
- The ABS credits this uptick to the historically warm August we experienced, which was the hottest on record since 1910.
- The delayed impact of recent tax cuts is another factor that may be responsible.
- Typically, consumers will first look to settle debt or save unexpected inflows before considering retail purchases.