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Narrow Ranges In Muted Pre-Christmas Dealing

BONDS

NZGBs observed narrow ranges on Friday in muted pre-Christmas dealing, finishing 1bp richer to 3bps cheaper across the major benchmarks as the curve twist steepened. The space ticked away from early session lows, however the recovery did not follow through.

  • 10-Year NZ US Swaps are stable and sit at +56bps. RBNZ dated OIS remain stable, there are ~80bps of cuts priced by Nov 24.
  • Domestic newsflow has been light on Friday, and a reminder that there was no local data today.
  • Looking ahead, markets in New Zealand are closed on Monday and Tuesday and will re-open on Wednesday.

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