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.