Westpac: A$ Net Delta Moved To Sell-Side Territory In June

Westpac note that "net buyside flows slowed again in June, and by the end of the month the 20-day rolling delta ventured into sell-side territory for the first time since February. Looking at the composition of investors, funded accounts surpassed sovereigns and emerged as the largest buyer this month, while the sell-side flows came from corporates and domestic real money accounts. The derivative receive-side flows in May have reversed into payside in June and flows increased towards the end of the month, possibly reflecting position taking in anticipation for the RBA's decision on YCC and QE. We also saw net buying of government bonds as well as buy-side support in the 2- to 5-Year maturities, but net selling in 10+-Year maturities late in the month which could be the market setting up for a reversal for the recent curve flattening trend."