Daily Flows
- Friday, there was flow to Semi-government fixed securities with levels above 4.00% locked in for 2 year terms.
- Investors are flocking to Judo Bank as they consider their new credit rating of A-2/BBB and 6 month standout rate of 5.15%.
- NCD levels remained steady with outright offerings ranging from 4.80-4.90%.
Non-Farm Payrolls & The Week Ahead
- US non-farm payrolls surged by 275k in February, surpassing expectations and indicating robust labor market conditions.
- Despite the strong job growth, the unemployment rate ticked up to 3.9%, suggesting a nuanced perspective on the labor market’s strength.
- While non-farm payrolls exceeded expectations, job gains were mainly concentrated in healthcare, government, and construction sectors, with minimal changes in other major industries.
- US bond yields experienced a slight decrease, while market expectations for a Federal Reserve rate cut by June remained unchanged.
- The US 2-year treasury yield hit its highest level since December, with the 10-year yield also rising, reflecting heightened expectations for interest rates.
- It is a relatively quiet week. In the U.S. the CPI print will be watched closely by markets where a 0.3% MoM increase is expected.
- In Australia, Consumer confidence Index and NAB business confidence is released.