MNI: PBOC Net Drains CNY308.4 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1659 Thurs; +1.55% Y/Y

CHINA PBOC CONDUCTS CNY19.2 BLN VIA 7-DAY REVERSE REPOS THURS

CHINA OCT EXPORTS +12.7% Y/Y VS MEDIAN +5.0% Y/Y: CUSTOMS

CHINA YTD EXPORT +5.1% Y/Y VS JAN-SEP +4.3% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1659 THURS VS 7.0993

MNI: CHINA YTD EXPORTS +6.7% Y/Y IN YUAN TERM: CUSTOMS

MNI:AUSTRALIA SEP TRADE BALANCE A$+4609

EZ/UK Bond Supply Calendar: Spain, France Auction on Wednesday

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

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

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

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

BONDS: NZGBS: Weaker, Trump Trade Policies To Add To Global Inflation: RBNZ

BONDS
BulletMarketsFixed Income Bullets

NZGBs closed on a weak note, with benchmark yields 2-3bps higher. The NZGB 10-year has underperformed since yesterday’s close with the NZ-US and NZ-AU yield differentials 6-7bps tighter.

  • Donald Trump’s trade policies will add to global inflation pressures but won’t threaten financial stability unless retaliation spirals out of control, according to the RBNZ. During a briefing on financial stability, RBNZ deputy governor Christian Hawkesby told Parliament independent central banks could easily manage this extra inflation pressure.
  • Traders are now shifting attention to the Federal Reserve’s interest-rate decision later today, where policymakers are expected to cut borrowing costs by 25bps. Cash US tsys are ~1bp richer in today’s Asia-pac session after yesterday’s savage post-election sell-off.
  • Today’s supply saw decent demand with cover ratios ranging from 2.45x (May-28) to 3.60x (May-54).
  • Swap rates closed 3-5bps higher, with the belly underperforming.
  • RBNZ dated OIS pricing closed 1-4bps firmer across meetings, with May 2025 leading. A cumulative 91bps of easing is priced by February, with 52bps by year-end.
  • The local data calendar is empty until next week's 2-year inflation expectations print.
172 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 on a weak note, with benchmark yields 2-3bps higher. The NZGB 10-year has underperformed since yesterday’s close with the NZ-US and NZ-AU yield differentials 6-7bps tighter.

  • Donald Trump’s trade policies will add to global inflation pressures but won’t threaten financial stability unless retaliation spirals out of control, according to the RBNZ. During a briefing on financial stability, RBNZ deputy governor Christian Hawkesby told Parliament independent central banks could easily manage this extra inflation pressure.
  • Traders are now shifting attention to the Federal Reserve’s interest-rate decision later today, where policymakers are expected to cut borrowing costs by 25bps. Cash US tsys are ~1bp richer in today’s Asia-pac session after yesterday’s savage post-election sell-off.
  • Today’s supply saw decent demand with cover ratios ranging from 2.45x (May-28) to 3.60x (May-54).
  • Swap rates closed 3-5bps higher, with the belly underperforming.
  • RBNZ dated OIS pricing closed 1-4bps firmer across meetings, with May 2025 leading. A cumulative 91bps of easing is priced by February, with 52bps by year-end.
  • The local data calendar is empty until next week's 2-year inflation expectations print.