Daily Flows

• TD rates have retracted slightly from last week. This may be driven by a culmination of softer than expected inflation data out of the U.S. and domestically.
• Market TD levels have dropped to levels 5.60% for 1 year, with bespoke offerings standing out at 5.75% for 1 year.
• NCD margins have cooled slightly as liquidity loosens, that being said +50 is still being offered by market participants for 3 months.

Worrying Signs From China

• Yesterday, China’s GDP came in lower than expected at 6.3% YoY.
• These figures are somewhat distorted to be more favourable due to the lockdown that was still ongoing on in major cities last year.
• The data showed that a weak pandemic recovery, reduction in investment confidence and high youth unemployment to be driving a slow down in China.
• Looking forward the degree of growth may be dependent on confidence from consumers and businesses. Additionally, potential stimulus from the Chinese government may be needed to support the economy.
• With Australia being one of China’s biggest trading partners, markets will be watching developments closely to see how it may impact on a domestic level .