BONDS: ANZ summary on the New Zealand...>

NEW ZEALAND: BONDS: ANZ summary on the New Zealand bond market by David Croy,

Senior Interest Rate Strategist: Market views, the short end is mildly lower but

challenged by LVR's being removed, on the long end NZ rates may compress further

on the spread but local long end yields have been less volatile with neutral or

bullish directions for the week ahead. ANZ forecasted steeper curves towards the

end of last week but low inflation and spread compression say they should be

flatter, 'its the continued lack of inflation that has us favouring the

downside.' - Generally for the economy the housing market may be a headwind and

consumer sentiment remains elevated and rising. Wednesday 12pm the Pre-election

Economic and Fiscal Update will be announced and ANZ predict it will show a

similar picture to the last one in May but for the starting point to be a little

better. -Trade recommendations, NZ/US 5yr5yr spread narrower, ANZ suggest

holding this trade as it's treading water. As the market is ripe for convergence

as NZD strength and dissatisfaction with US politics deliver outperformance.

NZGS syndication is delayed, countered by lack of corporate paying interest in

the wake of recent volatility.