Local Yields Play Catch Up As Onshore Markets Return

New Zealand government yields continued to track higher for much of the session, as local markets played catch up after being shut for yesterday's session. The 10yr yield has climbed 12bps to sit back at 4.44%, close to late 2023 levels. Similar rises in yield terms have been seen across other parts of the curve, except for the 2yr, +5bps.

• This looks to be largely reflective of catch up following a weaker start to core bond markets since the start of the year. US easing odds for March have been trimmed modestly versus levels from mid last week.
• There has been little news flow out of NZ, with house price data for Dec due later in London hours. The data calendar is empty for the rest of the week,
• In the swap space, the 2yr yield sits close to 4.60%, against recent lows near 4.50%.