Daily Flows & Insights – Quiet Markets Ahead of Thanksgiving in the U.S.

Daily Flows

  • Flow was directed to 3-5 year floating rate major bank bonds with margins upwards of +72 and +85 respectively.
  • A bid tone in the NCD space has seen activity pick up, with some ADI’s looking place funds out for 6 months and locking in outright levels of 5.13%.
  • There is a significant discrepancy between ‘A’ rated offerings and the BBB space. Those willing to place in the BBB space are able to lock in levels of 5.40% for 6 months in comparison to 5.15% from ‘A’ rated counterparties.

Quiet Markets Ahead of Thanksgiving in the U.S.

  • Markets traded thin with Thanksgiving coming up in the U.S.
  • There is minimal data to drive global markets as investors await for the FOMC minutes.
  • Bond yields have stabilised from recent volatility with the U.S. 10- year Treasury yield dropping to 4.41% and the U.S. 2 year steadying at 4.91%.
  • Domestically, Markets will be digesting RBA minutes and Michelle Bullocks speech at the ASIC Annual Forum.
  • Attention will be focused on any changes to the wording relating to future interest rate policy.
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Curve Team
Jack Pedersen