Funding costs fall
There was a lot of hype about rising interest rates and funding costs last year, but that's all dissipated.
Both 3-month and term are where Aussie banks hedge, fund, and borrow, and deposit flows have been solid.
3-month bills are now tracking at under 1 per cent.
As appetite for mortgage lending picks up I expect we'll see more stories about mortgages being available from 3 per cent or even lower.
