Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – Home Loans & Jobs

Friday, 3rd June, 2022

Daily Flows

  • Activity yesterday was led by the announcement that Gateway Bank, previously unrated, has received a Baa2/P-2 credit rating from Moody’s, sparking steady investment at an attractive rate.
  • Flows outside of this announcement were relatively standard. 3m unrated TD’s remain available at 1.90% from multiple names.
  • Bank of Queensland and ME increased their rates further, now offering highly competitive levels above other names, especially given the BBB+ level.
  • We saw notable bond flow, with the Suncorp September 2026 (AA-) line proving popular, trading substantially above a 100bp margin.

Home Loans Data

  • Home loans value for April is released this morning.
  • The market is expecting a print of -0.50%. In money markets, this print will prove quite important as more ADIs come to market to fund loans.

U.S. Jobs Data

  • Jobs growth slowed for May in the U.S., with just 128,000 jobs added in the private sector.
  • Small companies saw a decrease in employees overall, with a slight uptick in medium sized companies.
  • Digesting the data, it is more likely that firms are unable to find employees rather than not needing to hire. Larger companies are willing to pay heightened salaries to employees, making smaller companies unable to compete.
  • This places further pressure on wages growth and inflation moving forward.

Lawrence Vosper, Nicholas Allan

Curve Team