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AU-NZ 10Y Yield Differential Breaks Out Of Its 3M Range

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Today, the NZ-US 10-year yield differential remains relatively stable, standing at +66bps, which is approximately 10bps wider than Friday's opening level. However, this places it close to the midpoint of the range observed over the last 12 months, which has fluctuated between +40 and +85bps.

  • In contrast, the AU-NZ 10-year yield differential has reached its widest level since October, currently sitting at -68bps.
  • Before Friday, this particular differential had fluctuated within a range of -30 to -60bps over the past three months.
  • It's noteworthy that the 12-month high for this differential is approximately -100bps.

Figure 1: AU-NZ 10-Year Yield Differential



Source: MNI – Market News / Bloomberg

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