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BONDS: NZGBS: Played Catch-Up To Post-RBA ACGB Rally

BONDS
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NZGBs ended the day stronger, with benchmark yields down 1-4bps, though slightly above their intraday lows. 

  • With an empty domestic calendar and cash US tsys ~1bp cheaper in today’s Asia-Pac session, today’s rally appeared to be a delayed spillover from yesterday’s post-RBA rally in ACGBs. The local market was closed when the RBA delivered its policy decision yesterday.
  • Nevertheless, the NZ-AU 10-year yield differential finds itself 3bps wider than yesterday’s close, despite a paring of yesterday’s rally by ACGBs.
  • Swap rates closed 2-5bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing closed 5-7bps softer across 2025 meetings. A cumulative 87bps of easing is priced by year-end.
  • The local calendar is again empty tomorrow, with ANZ Consumer Confidence on Friday and ANZ Business Confidence on Monday.
  • Tomorrow, the NZ Treasury plans to sell NZ$250mn of the 3.00% Apr-29 bond, NZ$225mn of the 4.50% May-35 bond and NZ$25mn of the 2.75% Apr-37 bond.
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NZGBs ended the day stronger, with benchmark yields down 1-4bps, though slightly above their intraday lows. 

  • With an empty domestic calendar and cash US tsys ~1bp cheaper in today’s Asia-Pac session, today’s rally appeared to be a delayed spillover from yesterday’s post-RBA rally in ACGBs. The local market was closed when the RBA delivered its policy decision yesterday.
  • Nevertheless, the NZ-AU 10-year yield differential finds itself 3bps wider than yesterday’s close, despite a paring of yesterday’s rally by ACGBs.
  • Swap rates closed 2-5bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing closed 5-7bps softer across 2025 meetings. A cumulative 87bps of easing is priced by year-end.
  • The local calendar is again empty tomorrow, with ANZ Consumer Confidence on Friday and ANZ Business Confidence on Monday.
  • Tomorrow, the NZ Treasury plans to sell NZ$250mn of the 3.00% Apr-29 bond, NZ$225mn of the 4.50% May-35 bond and NZ$25mn of the 2.75% Apr-37 bond.