Net Delta Dipped Into Sell Side Territory In Late February

Westpac note that their “20-day rolling sum of net A$ flow delta was mostly in buy-side territory in February, but dipped into sell-side territory into month end. Looking at the composition of investors, sovereign and domestic real money accounts were the largest buyers, and we also saw some buy flows from offshore real money accounts towards the end of the month. The sell-side flows came mostly from corporate and funded accounts. We saw large buying flows of government bonds, which aligned with the recent bond rally stemming from safe-haven bids triggered by the global risk backdrop surrounding events happening in Ukraine. We saw the largest amount of net derivative pay-side flows since November 2021, which came mostly from corporate and funded accounts, likely fixing rates in anticipation of upcoming central bank tightening. The 3-/10-year curve also continued to flatten this month, our flows showed large net buying in the 2- to 5-Year maturities and net selling in the 5- to 10-Year maturities.”