MNI BRIEF: China NPC Press Conference Set For Nov 8

MNI BRIEF: China Warehousing Index Down In October

RBA BOARD REPEATS "NOT RULING ANYTHING IN OR OUT"

MNI: PBOC Net Drains CNY364.5 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Lower At 7.1016 Tues; +3.12% Y/Y

CHINA PBOC CONDUCTS CNY18.3 BLN VIA 7-DAY REVERSE REPOS TUES

MNI: FRANCE SEP INDUSTRIAL PRODUCTION -0.9% M/M, -0.6% Y/Y

MNI: SWISS OCT UNEMPLOYMENT +2.8% M/M, +24.5% Y/Y

MNI: RBA LEAVES CASH RATE AT 4.35%

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

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

BONDS: NZGBS: Subdued Session Ahead Of Key Events, Q3 Jobs Tomorrow

BONDS
BulletMarketsFixed Income Bullets

NZGBs closed 1bp cheaper after a very subdued local session ahead of the RBA Policy Decision, (after-market) and the US Presidential Election later today. 

  • Earlier today the RBNZ released its Financial Stability Report. The report said the country is experiencing a pronounced economic downturn that could get worse.
  • Swap rates closed 1bp lower to 1bp higher, with a flattening bias.
  • RBNZ dated OIS pricing closed flat to 2bps firmer across meetings. A cumulative 97bps of easing is priced by February, with 56bps by year-end.
  • Q3 labour market data including wages are released tomorrow. They are expected to show a contraction in employment with the unemployment rate rising to 5% driven by lower growth and job shedding.
  • This softening in labour demand should help to ease wages growth, as well as no new public sector agreements, which drove the Q2 increase. The RBNZ meets on November 27 and is likely to cut rates again but the size of the move is currently uncertain.
  • On Thursday, the NZ Treasury plans to sell NZ$200mn of the 0.25% May-28 bond, NZ$250mn of the 4.50% May-35 bond and NZ$50mn of the 5.0% May-54 bond.
184 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 1bp cheaper after a very subdued local session ahead of the RBA Policy Decision, (after-market) and the US Presidential Election later today. 

  • Earlier today the RBNZ released its Financial Stability Report. The report said the country is experiencing a pronounced economic downturn that could get worse.
  • Swap rates closed 1bp lower to 1bp higher, with a flattening bias.
  • RBNZ dated OIS pricing closed flat to 2bps firmer across meetings. A cumulative 97bps of easing is priced by February, with 56bps by year-end.
  • Q3 labour market data including wages are released tomorrow. They are expected to show a contraction in employment with the unemployment rate rising to 5% driven by lower growth and job shedding.
  • This softening in labour demand should help to ease wages growth, as well as no new public sector agreements, which drove the Q2 increase. The RBNZ meets on November 27 and is likely to cut rates again but the size of the move is currently uncertain.
  • On Thursday, the NZ Treasury plans to sell NZ$200mn of the 0.25% May-28 bond, NZ$250mn of the 4.50% May-35 bond and NZ$50mn of the 5.0% May-54 bond.