Westpac: Net Buy-Side Flow Turned To Record Selling Late October

Westpac note that "the 20-day rolling sum of net flow delta was in buy-side territory for most of October, before last week's CPI release sparked a sharp sell-off in markets, when net sell side flow surpassed the peak levels during the start of the pandemic. Looking at the composition of investors, offshore real money accounts were the largest buyers during the month, decreasing into month-end, and the sell-side flows came mostly from funded accounts and corporates. Derivative pay-side led the sharp increase in sell-side flows, reflecting the massive repricing across bonds and swap markets, as well as a lack of liquidity. Despite the sharp curve flattening trend we saw, Westpac's flows showed only some selling of government bonds in 2- to 5-Year maturities, and large net selling in 5-to 10-Year and > 10-Year maturities, which spiked at the end of the month."