– Daily Flows & Commentary BY THE CURVE TEAM –

4th of January, 2022

Flows:

• We pick up the new year where we left off late last year with plenty of TD, NCD and Bond opportunities continuing.
• AMP and Judo remain the standout when it come to TD opportunities with AMP offering 0.85% for 3 months, 1.00% for 6 months and 1.10% for 12 month representing the peak of the short end curve.
• Bonds spreads have drifted wider over the break and there is plenty of stock available across various credit rating buckets and eligible names.

Insights:

• Covid and the spread of Omicron continues to dominate the news headlines as we enter the new year.
• It is being reported that at the current rate of reproduction the virus could burn itself out through heard immunity in a number of months.
• Elsewhere we have seen bond yield higher and supply chain concerns grow as China continues to try and suppress the virus.