Butterfly Test #1
RBA statement marks change in outlook but still dampens hike expectations
The Reserve Bank of Australia met market expectations in its first statement on monetary policy of 2022, confirming the imminent end of bond purchases and taking a markedly more positive tone on the economic outlook. But analysts interpret the lack of a move to a more aggressive rate hiking cycle as a more dovish tone than the reserve bank could have taken, pushing back higher rate expectations to the second half of the year.
Westpac’s senior return keeps good times rolling in Australian primary market
Westpac Banking Corporation’s first domestic senior-unsecured transaction since 2019 met expectations that have become increasingly positive in the wake of multiple successful deal prints at the start of the new year. Volume was at the upper side of estimates thanks to ongoing strong investor appetite for bank paper.
SSAs get busy as Kauri market demonstrates ongoing appeal
Early-year supranational, sovereign and agency deal flow in the Kauri market demonstrates the attractiveness of New Zealand issuance to global borrowers, as deal sources say each of the three transactions completed by late January provided a positive outcome for its issuer.
ADB finds favourable Kauri market to kick off new-year flow
Asian Development Bank took advantage of favourable Kauri market conditions to price its largest-ever New Zealand dollar deal on 18 January – also the first new issuance in the market this year. The issuer says limited Kauri supply, ample investor cash balances, attractive outright yield and upcoming redemptions helped the successful placement.