– Daily Flows & Commentary BY THE CURVE TEAM –

Tuesday, 31st May, 2022

Daily Flows

• We saw strong activity yesterday to start the week, with activity across numerous names and terms as many ADI’s seek funding.
• Investor demand for ADI’s has proven to be particularly sparce, with limited interest even at recent 3-month margins of +25. This has led ADI’s to look deeper into the term deposit and middle market space.
• ING dropped their standout 1-year rate from 3.15% back down to 2.88% yesterday, leaving Bank of Queensland as the highest carded TD rate at BBB+ and above across most terms.
• A domestic BBB name has come to market today with a standout end of month special, showing 1.80 and 2.60% for 3 and 6-month TD’s respectively. They are also offering +30 for a 3-month NCD, currently 5bps above anyone else at this rating. In the unrated space we have seen three month TD’s jump to 1.90%. 

Here Cometh the Data

• It was a relatively quiet start to the week with US physical markets closed for Memorial Day long weekend.
• That didn’t stop there being a little noise in Bond and Currency markets after inflation in a number of European countries including Germany remained robust, showing little signs of slowing just yet.
• The focus in Australia today will be on the last of the partial indicators of GDP before the final print tomorrow.
• On the monthly data we have building approvals and private sector credit.
• Meanwhile yesterday the weekly consumer sentiment survey remained soggy with a read of 90.7 down a touch from last month and well below the long run average.