Daily Commentary BY THE CURVE TEAM –

Daily Flows and Insights – Covid

20 December, 2021

Curve Weekly Flows

  • We have continued to see strong activity in the lead-up to Christmas as clients look to square up their investment positions, resulting in several opportunities from ADIs across the board.
  • AMP term deposits have seen very strong flows and remain the highest rates in the market, with 3 months at 0.85% and 1 year at 1.10%. These offers remain open to financial institutions until Christmas Eve.
  • AMP is not the only ADI offering 0.85% for 3 months, as numerous domestic ADIs in the unrated to BBB space continue to hunt for funds before the end of the year.
  • Several issuers have come to market with bonds, with Macquarie launching a $150m 1 year FRN at +15 and SAFA issuing $250m of a 2025 FRN at OCR+17. Today AMP are issuing an additional $50m of a +90 3 year FRN.

Key Updates

Tuesday – RBA Minutes

Covid Cases

  • There are over 2 000 daily cases of covid in NSW currently.
  • Those with covid will have to isolate and close contacts too.
  • As long as this continues, it will put a dampener on economic activity.

US 10 Year Treasury

  • The yield has remained very low at 1.40%.
  • This is despite the Fed confirming they will taper QE faster than originally planned and rate hikes expected for next year.
  • There were calls for the 10 year to reach over 1.75% by the end of the year.

Josh Stewart

Associate - Money Markets