– Daily Commentary BY THE CURVE TEAM –
Daily Insights – Rate Movements
6 December, 2021
Key Updates
Monday – Job Ads for November
Tuesday – RBA Decision & House Prices Q3
Curve Flattener
- The 10-year US treasury continues to decline, sitting at 1.36% following weak employment numbers.
- Whereas short term rates continue to rise as the Fed is expected to taper quicker than originally planned.
- There are calls for the curve to be inverted prior to the Fed raising the cash rate, which is viewed as a signal for imminent weak economic activity.
CIBC 1 Year FRN
- CIBC issued $200 billion at +19 over 3 month BBSW last week.
- It follows a run of banks completing one year issues.
April 2024 Issue
- The Australian Government issued another $1.5 billion of the April 2024 bond, which the RBA recently abandoned the 0.10% yield curve target on.
- It had a lowest accepted bid of 0.655% and high of 0.68%.