Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – Inflation Spooks Markets

Tuesday, 10th May, 2022

Daily Flows

  • Several ADI’s within the unrated and BBB rated space sought deposits yesterday as funding pressures persist, although investor funds were a little more sparce.
  • 35% from Judo Bank remained the 3-month highlight, although several other names offered attractive levels. A standout 1.45% is available today from an unrated domestic name.
  • MyState Bank (A-2/BBB) continue to offer high rates across the curve for both TD’s and NCD’s, attracting steady flows as they seek strong funding.

Inflation Spooks The Market

  • Equities, commodities, and yields all fell overnight as markets reduce their risks.
  • U.S. CPI will be released in the early hours of the morning tomorrow. The market is expecting a fall in inflation from 8.50% YoY to 8.10%.
  • The market fears that central banks are well behind the inflation curve and ongoing pressure from the Ukraine War were the cause of the change in risk sentiment.
  • Oil prices are set to be volatile with discussions taking place between European countries and the buying of Russian Oil & Gas.

Lawrence Vosper, Nicholas Allan

Curve Team