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BONDS: NZGBS: Richer With US Tsys, Light Local Calander Again

BONDS
BulletMarketsFixed Income Bullets

In local morning trade, NZGBs are 3-4bps richer after the US tsy curve bull-steepened, with yields finishing 1-5bps lower.  

  • Risk appetite was buoyed overnight following the hefty easing from Chinese authorities yesterday. The Nasdaq Composite paced US equities modestly higher, while commodities advanced on improving growth expectations.
  • There was a 2-year $69 billion bond auction overnight which drew the expected yield of 3.520%, the lowest for a two-year note auction since August 2022 while the bid/cover ratio was slightly down from prior at 2.590x. The solid reception to the 2-year auction, reinforced the ongoing demand for the front end of the curve.
  • Data was markedly weaker than expected in September. Consumer confidence fell to 98.7 (cons 104.0) for a sizeable slip after an upward revised 105.6 (initial 103.3) in Aug. Declines were seen in both the present situation and expectations components. 
  • Swap rates are 4-5bps lower.
  • RBNZ dated OIS pricing is 1-7bps softer across meetings. A cumulative 86bps of easing is priced by year-end.
  • Today, the local calendar is once again empty.
  • 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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In local morning trade, NZGBs are 3-4bps richer after the US tsy curve bull-steepened, with yields finishing 1-5bps lower.  

  • Risk appetite was buoyed overnight following the hefty easing from Chinese authorities yesterday. The Nasdaq Composite paced US equities modestly higher, while commodities advanced on improving growth expectations.
  • There was a 2-year $69 billion bond auction overnight which drew the expected yield of 3.520%, the lowest for a two-year note auction since August 2022 while the bid/cover ratio was slightly down from prior at 2.590x. The solid reception to the 2-year auction, reinforced the ongoing demand for the front end of the curve.
  • Data was markedly weaker than expected in September. Consumer confidence fell to 98.7 (cons 104.0) for a sizeable slip after an upward revised 105.6 (initial 103.3) in Aug. Declines were seen in both the present situation and expectations components. 
  • Swap rates are 4-5bps lower.
  • RBNZ dated OIS pricing is 1-7bps softer across meetings. A cumulative 86bps of easing is priced by year-end.
  • Today, the local calendar is once again empty.
  • 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.