Daily Flows & Insights – All Quiet on the Western Front with Christmas Around the Corner

Daily Flows

  • Investors can still take advantage of +55 margins over 3 month BBSW, with A1/A names chasing funds through to the end of the week.
  • A new A2/BBB name partnering with Curve saw the first flows via its wholesale channel yesterday, offering 5.23% for 6 months. The ADI will continue to chase funding into the New Year.
  • We have seen strong interest in the 5.23% rate being offered for 12 month deposits from an A1/A name, with attractive rates being offered out to 18 months for those participants looking slightly further out.

All Quiet on the Western Front with Christmas Around the Corner

  • Not much to write home about today, with the only data release coming from Westpac Leading Index for November. This index is based on nine economic indicators across consumer confidence, housing, and money supply, amongst others.
  • The index tends to have a negligible impact as most of the indicators in the ‘basket’ have been previously released.
  • It can, however, provide an insight into the general state of the Australian economy, with a negative print, like October’s -0.03% reading, being generally bearish. Despite its muted impact on markets, another negative print would only add to pessimistic sentiment on the back of an RBA Statement of Monetary Policy yesterday that was hardly optimistic.
  • The Bank of Japan held rates steady at -0.10% with JGB yields unchanged across the curve. Canadian inflation came in hotter than expected, rising 0.1% MoM against a forecast -0.1%. This was a setback to the central bank who held rates at 5.00%, their highest in 20 years, for the third straight month in November.
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Curve Team
Josiah Binet