Daily Flows
- Last week, Police Bank successfully priced a 3-year MTN, raising $75 million at a margin of +115. Along with Westpac, Curve acted as Joint Lead Manager to bring this deal to market.
- There were fewer long-term placements on Friday, which was surprising given the pickup in 4- and 5-year investments around 5.20%.
- Similarly, most term deposits were placed around the 6-month mark, where the highest short term outright levels are offered.
Weak U.S. Jobs Growth & The Week Ahead
- October nonfarm payrolls rose by a modest 12,000, significantly below expectations, with low response rates likely due to hurricanes and a shortened survey period.
- Similar to Australia, hiring in the U.S. has been concentrated in healthcare and government sectors, while private sector job growth has slowed.
- The unemployment rate remained stable at 4.1%, reflecting a labour market rebalancing driven by recent monetary policy.
- Weaker-than-expected job figures and steady inflation have increased the likelihood of a 25bp rate cut by the FOMC as market expectations adjust.
- Short-term concerns persist around election processes and possible disputes, but the release of U.S. election results on Wednesday could ease long-term uncertainty.
- Domestically, attention turns to the RBA monetary policy meeting on Tuesday, coinciding with the Melbourne Cup.
- Markets and economists widely expect a hold on rates, with no major adjustments anticipated until early to mid-next calendar year.
