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BONDS: NZGBS: Closed On A Strong Note, Tracking US Tsys

BONDS
BulletMarketsFixed Income Bullets

NZGBs closed on a strong note, with benchmark yields 3-7bps lower. The 2/10 curve steepened.

  • RBNZ Deputy Governor Christian Hawkesby commented at the INFINZ conference that the OCR “is headed more toward neutral”. Adding that the pace of decline “is really around how things evolve from here” in terms of what information and data come up.
  • Regarding the banking system, he added that RBNZ doesn’t have much control over competition but can have an influence and can help improve competition with current legislation.
  • “Lower interest rates mean families get to keep more of their money and they increase the opportunities for businesses to invest, innovate and expand,” Finance Minister Nicola Willis told a finance sector conference Tuesday in Auckland. (per BBG)
  • However, with the NZ-US and NZ-AU 10-year yield differentials little changed, today’s NZGB strength reflects global market developments. Cash US tsys are flat to 2bps richer, with a flattening bias, in today’s Asia-Pac session after being closed yesterday for Columbus Day. 
  • Swap rates closed 5-6bps lower.
  • RBNZ dated OIS pricing is little changed. 53bps of easing is priced for the November meeting, with a cumulative 91bps by February.
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NZGBs closed on a strong note, with benchmark yields 3-7bps lower. The 2/10 curve steepened.

  • RBNZ Deputy Governor Christian Hawkesby commented at the INFINZ conference that the OCR “is headed more toward neutral”. Adding that the pace of decline “is really around how things evolve from here” in terms of what information and data come up.
  • Regarding the banking system, he added that RBNZ doesn’t have much control over competition but can have an influence and can help improve competition with current legislation.
  • “Lower interest rates mean families get to keep more of their money and they increase the opportunities for businesses to invest, innovate and expand,” Finance Minister Nicola Willis told a finance sector conference Tuesday in Auckland. (per BBG)
  • However, with the NZ-US and NZ-AU 10-year yield differentials little changed, today’s NZGB strength reflects global market developments. Cash US tsys are flat to 2bps richer, with a flattening bias, in today’s Asia-Pac session after being closed yesterday for Columbus Day. 
  • Swap rates closed 5-6bps lower.
  • RBNZ dated OIS pricing is little changed. 53bps of easing is priced for the November meeting, with a cumulative 91bps by February.