Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – Boris Resigns, Trade Surplus Surprise

Friday, 8th July, 2022

Daily Flows

  • TD rates continue on a general slide as some ADI’s find easier funding and square up their positions.
  • However, others continue on the hunt for deposits, with strong opportunities available throughout the market. A domestic BBB+ rated ADI is offering outstanding rates today with 2.55 and 3.45% available for 3 and 6-month TD’s respectively.
  • NCD margins remain quite elevated, with Judo continuing to offer +40 for 3 months. A BBB rated name briefly offered +45 to secure funding, with the rest of the market sitting around +30 – +35.
  • CIBC have launched a 3-year FRN and/ or fixed covered bond today with indicative pricing at +95/ 4.40%. Interest is already strong, and books are expected to close later today.

Boris Resigns

  • Boris Johnson has resigned from being Prime Minister of Great Britain after losing the trust of his MPs.
  • He will remain the Prime Minister for up to 2 months, before handing over the reins.
  • It is not yet known who is to be the next PM, although internal politics will be running rife, with those that turned against Boris and those who stood by him.

Trade Surplus

  • The data yesterday saw a record trade surplus.
  • A surge in exports (9.5% MoM) resulted in a surplus of $15.97b.
  • The AUD trading below 70 US cents is a large contributing factor along with strong commodity prices.
  • Coal and iron ore are contributing factors and continue to provide Australia with a solid foundation.

Lawrence Vosper, Nicholas Allan

Curve Team