Daily Flows
- AMP remains the standout at the short end, with its 31-day notice account offering 4.50% (corporate) and 4.30% (financial). This continues to attract strong flows with the 30pts discretionary bonus expected to end soon.
- Rabobank (A-rated) leads longer-dated TDs, with between 4.20% to 4.60% still available across 1–5 year terms.
- A foreign A-rated branch bank holds firm at +53bps over 3m BBSW, keeping an edge over local names and appealing to investors chasing short-end margin.
Yields Ease and Confidence Lifts
- US Treasury yields eased, with the 10-year falling 7bps to 4.44% and the 30-year briefly dipping below 5%. The move came as concerns over rising global government debt supply eased.
- Expectations that Japan may scale back long-dated bond issuance added further support to long-end yields globally, helping reverse some of last week’s upward pressure.
- US consumer confidence jumped sharply, with the Conference Board index rising 12.3 points to 98.0 in May — the biggest monthly increase in four years — boosting risk appetite across markets.
- Trade tensions softened, as the US and EU agreed to work toward a trade deal within six weeks, easing fears of near-term tariffs.
- Locally, focus turns to April CPI, with consensus expecting a slight moderation to 2.3% y/y from 2.4% in March — a key input ahead of the RBA’s July meeting.
