Yesterday, the TCV 2031 Benchmark bond was settled at 3mBBSW +42, with the order book initially standing at 2.35 billion before narrowing down to a final size of 2.00 billion.
With the TFF’s final repayment window approaching, ADIs are actively seeking to reinforce their cash reserves through TD and NCD products.
As a result, we’re observing tailored offerings such as 5.21% for 12-month TDs and nearly 6mBBSW +65 for 6-month NCDs.
U.S. PMI Indicates Economic Cool Down; Will The Feds Path Ahead?
Overnight, the U.S. PMI registered a four-month low across Composite, Manufacturing, and Services sectors, with the composite index at 50.9, suggesting a potential economic slowdown.
New order inflows experienced their first decline in six months, while employment contracted for the first time since June 2020, reflecting weakened demand amidst elevated interest rates and inflationary pressures.
The U.S. services sector reached a five-month low, with slight contraction in manufacturing, indicating a softening in price pressures.
Despite the Fed’s commitment to maintaining higher rates to curb inflation, market sentiment responded, seeing pricing move to a 53% likelihood of a rate cut as early as July.
This data alone is not enough to warrant a change in sentiment from the Fed, however is similar results persist it could shift the current monetary policy outlook.