Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – Powell Signals Aggressive Policy Stance

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.

Nicholas Allan

Associate - Money Markets