– Daily Flows & Commentary BY THE CURVE TEAM –

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.