BONDS: NZGBS: Richer With US Tsys, RBNZ Silk Speech Due

In local morning trade, NZGBs are 3bps richer after US tsys climbed steadily off session cheaps to finish with US 2- and 10-year yields 6-7bps lower and the curve steeper.

• There was no US economic data yesterday, with the markets awaiting tomorrow’s CPI and Thursday’s PPI inflation measures.
• The Federal Reserve's top banking regulator Michael Barr on Tuesday said the biggest U.S. banks would face a 9% increase in capital requirements in a re-proposal of Basel endgame and G-SIB surcharge rules.
• A rebound in tech shares, driven in part by Oracle, helped the Nasdaq Composite and S&P 500 advance. The Dow was lower, dragged by JPMorgan and Goldman Sachs.
• Swap rates are 3bps lower.
• RBNZ dated OIS pricing is 1-4bps softer across meetings. A cumulative 78bps of easing is priced by year-end.
• NZ net migration estimates rose to +3,030 in July from a revised +2,880 in June.
• RBNZ assistant Governor Karen Silk has been speaking this morning at a Kanga news event, but as of yet there have been no headlines out.
• Tomorrow, the NZ Treasury plans to sell NZ$300mn of the 3.00% Apr-29 bond, NZ$150mn of the 4.50% May-35 bond and NZ$50mn of the 2.75% Apr-37 bond.