Daily Commentary BY THE CURVE TEAM –

Daily Insights – GDP Fall

2 December, 2021

Australia Q3 GDP

  • GDP fell 1.9% in Q3.
  • Household savings as a portion of income went to 19.8% from 11.8% as people were in lockdown and unable to spend.
  • Government spending contributed 0.8% points to growth over the quarter whereas household spending was down 2.5%.

TD and NCD Rates on the Rise

  • Numerous ADIs are searching for funds, which has increased rates on TDs and NCDs across the curve.
  • For TDs, 0.30% or more for 3 months, 0.50% or more for 6 months and 0.65% or more for 1 year are the going rates.
  • For NCDs, +10 or more is available from domestic ADIs and multiple ADIs are happy to take.
  • Prior to the last two weeks, very few ADIs were looking for funds and rates were very suppressed. Only bonds had experienced increases in yields following market expectations of earlier cash rate rises than the RBA is calling.

Josh Stewart

Associate - Money Markets