Antipodean Matters Eyed

TYM3 registered a fresh session low as the RBNZ provided a shock 50bp rate hike (markets were priced for a 25bp hike, with only 1 of the 22 surveyed by BBG looking for a 50bp step and 20 of the remaining 21 looking for a 25bp move), with ~3.3K lots given over a couple of clips post-decision. The contract has since recovered form worst levels, operating in a narrow 0-05 range, last -0-04+ at 116-03+. Cash Tsys are flat to ~3bp cheaper across the curve, bear flattening, with the RBNZ’s step aiding that impulse, although post-decision spill over moves in Tsys remained limited. RBA Governor Lowe’s subsequent address has provided little impetus for Tsys.