Daily Flows

• Fixed semi lines attracted flows yesterday with Tascorp the flavour of the day; their 2026 maturity proved popular for multiple buyers.
  
• 5.34% continues to set the pace for 12 month deposits today with another A1 bank matching it for 6 months.
  
• Branch banks have offered good relative value in the NCD space this week, with margins north of +50 available to market participants willing to look at these A1 names.

Weak PMIs Amidst Calls for First Fed Cut Next Week

• US PMIs continued their weak recent results in S&Ps indices released overnight, eking out minor gains for the services & composite indices.
  
• US manufacturers saw a significant drop from 51.6 to 49.5 in July, as they struggled to achieve strong production growth amid weak demand from purchases.
  
• Meanwhile, ex-New York Fed President Bill Dudley has called for the Fed to start cutting interest rates as of next week’s meeting, reversing his “higher for longer stance” amidst concern the economy is slipping towards recession.
  
• Money markets haven’t gone that far in their expectations but do see a September cut, a second in December, and a third in January 2025.