– Daily Commentary BY THE CURVE TEAM –
Daily Insights – Oil Backlash
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.
Nicholas Allan
Associate - Money Markets
Curve Securities: Term Deposits | Bonds | Yield Curve Specialists