– Daily Commentary BY THE CURVE TEAM –

24th of September, 2021

Markets Sentiment Improves as Fear Subsides

• Markets were in a much more buoyant mood overnight with bonds selling off (yields higher) and equities catching a bid
• It comes as fears of a financial meltdown subside following the coupon payment by China Evergrand on a line of outstanding debt.
• Long bond yields look like they might have broken out overnight with tapering news from the Fed still filtering through from the previous night.
• We should hear more on that over the next 24 hours with more than half a dozen Fed official set to speak.

Opportunities

• The move higher in long bond yields is making longer term fixed rate bonds look more attractive on the day.
• Improved sentiment failed to impact credit markets with a number of end of quarter opportunities in FRNs still available.
• Grand final long weekend in Victoria today will limit some NCD and TD availability so please be in contact if you have anything in particular and we can sort a solution.