Closed Little Changed, Narrow Ranges

NZGB benchmarks closed little changed after dealing in narrow ranges in today’s local session. Following a positive lead from US tsys overnight, which extended their post-FOMC rally, there has been a slight cheapening of 3-4 basis points in today's Asia-Pac session. Local participants may be engaging in profit-taking after the robust post-FOMC rally.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined manufacturing PMI.
• Swap rates closed flat to 5bps higher, with the 2s10s curve flatter.
• RBNZ dated OIS pricing closed 1-4bps firmer across meetings. The market still has 100bps of easing priced by Nov’24.
• "We think it’s likely, absent any further surprises, that the RBNZ will revert to something like their August 2023 view that the OCR will remain at 5.5% until the latter part of 2024. We continue to see them as remaining much more cautious than markets on the prospects for lower rates. All going well, we can see a path to where they get that confidence by the time of the August 2024 Monetary Policy Statement.": Westpac
• On Monday, the local calendar sees Westpac Consumer Confidence and the Performance Services Index.