– Daily Flows & Commentary BY THE CURVE TEAM –

Friday, 22nd April, 2022

Daily Flows

• Bank of Queensland launched a $650 bond issuance yesterday across both fixed and floating tranches. Price set at an attractive 3mBBSW+110bps for the FRN and indicative yield of 4.0575% for the fixed.
• Judo Bank increased their term deposit rates and are once again the highest across all terms and credit ratings out to 2 years, with 0.90%, 2.05% and 2.90% available for 3-month, 12-month and 2-year rates respectively.
• Judo Bank NCD’s also attracted strong flows yesterday, with attractive margins out to a year. Their 3-month level has proven particularly popular at +30, coming to an outright rate of 0.71% yesterday off the back of elevated BBSW rates.

Powell Signals Aggressive Stance

• Whilst it comes as no surprise, Powell has highlighted that 50 basis points will be discussed at the coming meeting.
• However, Powell reiterated that inflation is a serious worry for the economy, and whatever needs to be done, will be.
• Aggressive Monetary Policy stance is expected, to move counter inflation, and fast.
• Equities were down and treasuries sold off in response.

PMI Data Out Today

• Australian PMI Data is out today for Australia.
• Nothing much is expected out of the read before all eyes turn to the inflation print next Wednesday.