Daily Flows & Commentary BY THE CURVE TEAM –

Daily Flow & Insights – RBA Minutes and Deputy Governor’s Speech

Tuesday, 19th July, 2022

Daily Flows

  • Yesterday saw strong flows into BBB rated 1Yr TDs at 4.35%. This is tremendous value in the current environment
  • NCD flows remained strong at +30 for 3 months, with the rise in BBSW providing investors with returns just shy of 2.50%.
  • ADIs which haven’t come to market for a while returned yesterday, providing investors with a very good opportunity to diversify their portfolios.

RBA Minutes & Household Buffers

  • Today the RBA will release the RBA minutes for July.
  • Further insight to the RBA’s mentality surrounding future hikes is expected. In particular, whether the RBA (at the time of the meeting) was preparing to be patient or continue to hike.
  • With the recent employment data coming out stronger than expected, and inflation data to come, the RBA will be more likely to continue hiking.
  • Deputy Governor Bulloch is addressing the ESA Business Lunch today, with a speech titled “How are Households Placed for Interest Rate Increases?”
  • Whist it is known that households have built up considerable buffers throughout the pandemic, inflationary pressures and increased rates are starting to hit consumers hard.
  • Consumer confidence is a true reflection of the pain, which has continued to fall over the past months.

Nicholas Allan

Curve Team