October 29, 2024 04:28 GMT
BONDS: NZ-US 10Y Differential Close To YTD Low
BONDS
NZGBs closed mid-range, with benchmark yields 2-3bps higher. Yields were 5bps higher early in the session as the local market played catch-up to the sell-off in US tsys after yesterday’s Labour Day holiday.
- Notably, the NZGB 10-year has outperformed its US counterpart, with the NZ–US yield spread narrowing by 6bps since Friday’s close to reach +17bps. This places the differential just above July's low of +13bps, the narrowest level since mid-2021.
Figure 1: NZ-US 10-Year Yield Differential
Source: MNI – Market News / Bloomberg
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