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BONDS: NZGBS: Bear-Steepener Ahead Of A Heavy US Calendar

BONDS
BulletMarketsFixed Income Bullets

The NZGB curve bear-steepened today, with benchmark yields ending the day flat to 3bps higher, though below their session highs.

  • With the domestic calendar light, local investors were content to sit on the sideline ahead of a heavy US calendar later today. Today’s US calendar will see Weekly Claims, GDP, PCE, Cap Goods, Durables, and Pending Home Sales data alongside a flurry of Fed speakers: Barr, Cook, Kashkari, Williams and Chairman Powell.
  • Cash US tsys are ~0.5bp richer in today’s Asia-Pac session after yesterday’s bear-steepening.  
  • “New Zealand faces rising debt in coming decades as an ageing population exacerbates a structural budget deficit, in a major challenge for fiscal policy, a top Treasury adviser said. Government debt is projected to climb to more than 100% of gross domestic product by 2050 from about 43% now, Dominick Stephens, chief economic adviser at the Treasury.” (per BBG)
  • The swap curve twist-steepened, with rates closing 2bp lower to 2bps higher.
  • RBNZ dated OIS pricing closed little changed across meetings. A cumulative 87bps of easing is priced by year-end.
  • Tomorrow, the local calendar will see ANZ Consumer Confidence, ahead of ANZ Business Confidence on Monday.
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The NZGB curve bear-steepened today, with benchmark yields ending the day flat to 3bps higher, though below their session highs.

  • With the domestic calendar light, local investors were content to sit on the sideline ahead of a heavy US calendar later today. Today’s US calendar will see Weekly Claims, GDP, PCE, Cap Goods, Durables, and Pending Home Sales data alongside a flurry of Fed speakers: Barr, Cook, Kashkari, Williams and Chairman Powell.
  • Cash US tsys are ~0.5bp richer in today’s Asia-Pac session after yesterday’s bear-steepening.  
  • “New Zealand faces rising debt in coming decades as an ageing population exacerbates a structural budget deficit, in a major challenge for fiscal policy, a top Treasury adviser said. Government debt is projected to climb to more than 100% of gross domestic product by 2050 from about 43% now, Dominick Stephens, chief economic adviser at the Treasury.” (per BBG)
  • The swap curve twist-steepened, with rates closing 2bp lower to 2bps higher.
  • RBNZ dated OIS pricing closed little changed across meetings. A cumulative 87bps of easing is priced by year-end.
  • Tomorrow, the local calendar will see ANZ Consumer Confidence, ahead of ANZ Business Confidence on Monday.