Daily Flows

• AMP is offering a standout 4.75% (corporate) 4.55% (Financial)  for 31 days’ notice via a discretionary bonus to their account product – only available for a limited time.
• RACQ Bank (Moody’s Baa1) launched a new 3-year floating rate note yesterday at +135bps over 3-month BBSW, attracting solid demand from investors.
• ADIs continue to actively seek funding ahead of mid-month flows next week, with 1-year term deposits trading around 4.30% — presenting an attractive window for short-term yield.

Yields Up as the US and UK Reach Trade ‘Deal’

• Overnight, bond markets trimmed rate cut expectations after the US and UK struck a trade ‘deal’ that included sector-specific exemptions for cars, metals, and aerospace parts — though a 10% tariff still applies to most other goods.
• The US 10-year Treasury yield climbed 11bps to 4.38%, supported by strong job data from last week and the prospect of easing trade tensions, with sentiment further lifted by upcoming US-China talks this weekend.
• Still, enthusiasm was tempered — the agreement remains preliminary, with many unresolved issues and limited near-term economic impact, especially as the US already runs a goods trade surplus with the UK.
• Locally, it’s been a quiet week for data. The RBA remains in wait-and-see mode, monitoring global developments ahead of its next meeting on May 20.