Westpac Summarise Flow Themes From April

Westpac note that "March's increased net buy-side flows continued to accelerate into April and by the end of the month the 20-day rolling delta was running at the fastest pace since November. Looking at the composition of investors, sovereigns remain the dominant buyer, although that was slowing into month-end, while the buyside flows were offset by funded accounts, with March's derivative pay-side continuing into April. However, the main highlight was the fact that ACGB buying reached the highest in over 2 years, and indeed for our complete series going back to 2004. Supply clearly begets flow. Also, selling of Semis was the largest since the pandemic began, which is also reflected in the recent price action in that sector. Support for the >10-Year maturities continued, and we saw increased net buy-side flows in the 2- to 5-Year maturities. The former is reflected in the recent flattening of the AU curve, while the latter shows an increased appetite for front-end carry trades."