Westpac: A$ Net Sell-Side Flow Turned To Buying In Late November

Westpac note that “the 20-day rolling sum of net A$ flow delta was in sell-side territory for most of November, but reverted to buy-side territory late in the month, following safe haven buying amidst omicron fears. Looking at the composition of investors, offshore real money and sovereign accounts were the largest buyers, and the sell-side flows came mostly from funded accounts and corporates, decreasing into month end. Derivative pay-side led the way in sell-side flows for most of this month, reflecting the massive repricing across bonds and swap markets during that time period, but these flows dissipated and there was an increase of buying government bonds as we headed into month end. The 3-/10-Year curve continued to flatten, our flows show large net selling in the 5- to 10-Year zone and large net buying in 10+-Year maturities, which spiked at the end of the month.”