Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – Trade Balance Surprises on The Downside

Friday, 8th April, 2022

Daily Flows

  • Activity calmed a little yesterday from the volatility of Wednesday, with ADI rates and benchmark levels remaining relatively steady.
  • Bank of Queensland increased their TD rates, now offering the highest 6-month term available.
  • OCBC (Overseas China Banking Corp) issued a 3-year $700m FRN at 3mBBSW+70, with final order book demand strongly above the final print at $1.6bn.

Trade Balance

  • Yesterday’s trade balance surplus surprised on the downside, and by a considerable margin.
  • Market expectations were for $11.7b, but the print actually came in at $7.5b.
  • Imports surged by 12.1%, up $4.4b. Exports consolidated, as commodity prices stabilised throughout February, up 0.20%.

Markets Overnight

  • Markets were relatively quiet overnight.
  • Equities were up, slightly. The U.S Curve steepened, the 2Yr up 3 basis point and the 10Yr up 8 basis points.
  • Today, the RBA’s Financial Stability Review is out at 11:30am. A closely watched piece as markets look for insights to the inflation forecast.

Nicholas Allan

Associate - Money Markets