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BONDS: NZGBS: Little Changed, Modest Losses For US Tsys On Friday

BONDS
BulletMarketsFixed Income Bullets

In local morning trade, NZGBs are slightly cheaper after a modest cheapening for US tsys ahead of the weekend. The US 2-year yield closed at 3.59%, little changed on the day, while 10-year UST yields ended 3bps higher at 3.74%. The market awaits 2-year, 5-year and 7-year supply this week.

  • Dovish comments from Fed Gov Waller on CNBC, consistent with the Fed going 50bp at the next meeting in November, assisted US tsys’ move away from session cheaps.
  • Fed Governor Bowman (voter) issued a statement explaining why she dissented against the FOMC’s decision to cut the Fed Funds target range by 50bps on Wednesday.
  • The Job Ads index fell 1.3% m/m following a revised 3.5% gain in July (-31% y/y). “The August out turn continues the general downwards trend of the last two years” and “Fewer job ads and increased applications per job are consistent with a clear loosening of the labour market”: BNZ
  • It is a reasonably quiet week for NZ, today we have Trade Balance data which will be the major data point for the week.
  • Swap rates are 1-3bps higher, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing is little changed. A cumulative 82bps of easing is priced by year-end.
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In local morning trade, NZGBs are slightly cheaper after a modest cheapening for US tsys ahead of the weekend. The US 2-year yield closed at 3.59%, little changed on the day, while 10-year UST yields ended 3bps higher at 3.74%. The market awaits 2-year, 5-year and 7-year supply this week.

  • Dovish comments from Fed Gov Waller on CNBC, consistent with the Fed going 50bp at the next meeting in November, assisted US tsys’ move away from session cheaps.
  • Fed Governor Bowman (voter) issued a statement explaining why she dissented against the FOMC’s decision to cut the Fed Funds target range by 50bps on Wednesday.
  • The Job Ads index fell 1.3% m/m following a revised 3.5% gain in July (-31% y/y). “The August out turn continues the general downwards trend of the last two years” and “Fewer job ads and increased applications per job are consistent with a clear loosening of the labour market”: BNZ
  • It is a reasonably quiet week for NZ, today we have Trade Balance data which will be the major data point for the week.
  • Swap rates are 1-3bps higher, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing is little changed. A cumulative 82bps of easing is priced by year-end.