– Daily Commentary BY THE CURVE TEAM –

Tuesday 24th November, 2021

Oil Backlash

• Last night Biden implemented the strategic release of oil reserves to halt increasing prices.
• Oil clung to gains as the release was less than expected
• Biden’s release is in unison with China, Japan, India, South Korea and the UK.
• Brent has risen from $79.24 to $82.29 in response.

Spreads Continue the Narrative

• The recent market dislocation has presented returns in longer dated bonds as swaps continue to push higher
• Returns for tenor are still available and present a true opportunity within the current market.
• The Credit Curve (Pictured) is further evidence of the narrative.

RBNZ – Hike Imminent, But to What Degree?

• RBNZ  meet at 12.00 today
• A hike is inevitable, but the real question is: will the hike be 25 or 50 basis points?
• The hike is in response to continual house price increases and inflationary pressure.