Daily Commentary BY THE CURVE TEAM –

Daily Insights – Dust Settles

19th of November, 2021

Yields Drift Lower as Dust Settles on Wages Data

  • After an initial muted response, the yield curve has flattened a touch in the wake of the wages data on Wednesday.
  • The weak headline result supports the RBA’s view that there is no rush to tighten policy.
  • However, the improvement in private sector wages will have the RBA on notice
  • What it means is that the tension between the RBA’s outlook and the Market’s will continue through to February, resulting in high volatility, which will present investment opportunities.

Canadian Inflation

  • Another day and another solid inflation release, this time in Canada
  • Core inflation is still running ahead of the Bank of Canada’s target
  • Like most central banks, pressure is mounting to take action

David Flanagan

Head of Money Markets