MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI: GERMANY NOV UE RATE (SA) 6.1% (FCST 6.1%); OCT 6.1%

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

MNI BRIEF: Trump Tariffs To Push China, EU Cooperation - BOC

MNI: PBOC Net Drains CNY156.1 Bln via OMO Friday

MNI: ITALY NOV FLASH HICP +0% M/M, +1.6% Y/Y

MNI: EUROZONE NOV FLASH HICP +2.3% Y/Y

MNI: UK OCT M4 MONEY SUPPLY -0.1% M/M, +3% Y/Y

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BONDS: NZGBS: Cheaper After Fed Powell’s Comments Push US Yields Higher

BONDS
BulletMarketsFixed Income Bullets

In local morning trade, NZGBs are 3bps cheaper across benchmarks after US tsys reacted to comments from Chairman Powell at the NABE conference. 

  • The remarks were taken hawkishly by markets, when he said the central bank will lower interest rates “over time,” while emphasising that the overall US economy remains on solid footing.
  • Projected rate cut pricing receded as Powell stressed the Fed is not in a hurry to cut rates.
  • The US 2-year rate was up 8bps to 3.64%, while the 10-year was 3bps cheaper at 3.78%. The curve flattened to 14.7 bps.
  • The DXY firmed but finished off the day's high of 100.924.
  • Elsewhere, ECB Pres Lagarde gave a nod to another 25bp rate cut after saying policymakers were more confident that inflation is being controlled and will reflect on that at its October meeting.
  • Building Permits fell 5.3% m/m in August versus a revised +26.4% in July.
  • Swap rates are 2bps higher.
  • RBNZ dated OIS pricing is 1-3bps firmer for 2025 meetings. A cumulative 88bps of easing is priced by year-end.
  • Today, the local calendar will also see the NZIER Business Opinion Survey.
182 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

In local morning trade, NZGBs are 3bps cheaper across benchmarks after US tsys reacted to comments from Chairman Powell at the NABE conference. 

  • The remarks were taken hawkishly by markets, when he said the central bank will lower interest rates “over time,” while emphasising that the overall US economy remains on solid footing.
  • Projected rate cut pricing receded as Powell stressed the Fed is not in a hurry to cut rates.
  • The US 2-year rate was up 8bps to 3.64%, while the 10-year was 3bps cheaper at 3.78%. The curve flattened to 14.7 bps.
  • The DXY firmed but finished off the day's high of 100.924.
  • Elsewhere, ECB Pres Lagarde gave a nod to another 25bp rate cut after saying policymakers were more confident that inflation is being controlled and will reflect on that at its October meeting.
  • Building Permits fell 5.3% m/m in August versus a revised +26.4% in July.
  • Swap rates are 2bps higher.
  • RBNZ dated OIS pricing is 1-3bps firmer for 2025 meetings. A cumulative 88bps of easing is priced by year-end.
  • Today, the local calendar will also see the NZIER Business Opinion Survey.