MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

BONDS: NZGBS: Closed On A Weak Note, PMI & Food Prices Weigh

BONDS
BulletMarketsFixed Income Bullets

NZGBs closed on a weak note, with benchmark yields 4-6bps higher. 

  • NZGBs underperformed compared to their $-bloc counterparts, with the NZ-US and NZ-AU 10-year yield spreads widening by 4-5bps.
  • This underperformance likely stems from a combination of factors, including a rebound in the PMI, the largest annual increase in food prices since February, and continued selling pressure following yesterday's announcement of a larger-than-expected budget deficit.
  • “New Zealand's annual inflation is poised to return to the central bank's target band for the first time in nearly three years in the September quarter, but the so-called "disinflation progress" is more driven by global factors than by recent domestic monetary tightening, ANZ Research said in a Friday report.” (per MT Newswires)
  • Swap rates closed 5-6bps higher.
  • RBNZ-dated OIS pricing closed 5-14bps softer across meetings out to Apr- 2025 versus pre-RBNZ levels, despite today's 2-5bps firming. 52bps of easing is priced in for November (4.23%), with a cumulative easing of 90bps for February 2025 (3.85%) and 147bps for July 2025 (3.28%).
  • On Monday, the local calendar will see the Performance Services Index and Card Spending Total data as well as a speech by RBNZ Governor Orr on Maori Access to Capital.
193 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.

NZGBs closed on a weak note, with benchmark yields 4-6bps higher. 

  • NZGBs underperformed compared to their $-bloc counterparts, with the NZ-US and NZ-AU 10-year yield spreads widening by 4-5bps.
  • This underperformance likely stems from a combination of factors, including a rebound in the PMI, the largest annual increase in food prices since February, and continued selling pressure following yesterday's announcement of a larger-than-expected budget deficit.
  • “New Zealand's annual inflation is poised to return to the central bank's target band for the first time in nearly three years in the September quarter, but the so-called "disinflation progress" is more driven by global factors than by recent domestic monetary tightening, ANZ Research said in a Friday report.” (per MT Newswires)
  • Swap rates closed 5-6bps higher.
  • RBNZ-dated OIS pricing closed 5-14bps softer across meetings out to Apr- 2025 versus pre-RBNZ levels, despite today's 2-5bps firming. 52bps of easing is priced in for November (4.23%), with a cumulative easing of 90bps for February 2025 (3.85%) and 147bps for July 2025 (3.28%).
  • On Monday, the local calendar will see the Performance Services Index and Card Spending Total data as well as a speech by RBNZ Governor Orr on Maori Access to Capital.