– Daily Commentary BY THE CURVE TEAM –

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%.