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NGZBS: Marginally Cheaper To Start, Global & Local Matters Eyed


NGZBs have cheapened a touch given the cheapening in U.S. Tsys since yesterday’s local close, with the major cash NZGB benchmark yields running ~1.5bp higher across the curve.

  • Meanwhile, swap rates are 2-3bp higher early on, with some light steepening apparent there.
  • Local data has seen a flat print for food prices (M/M) and another M/M fall in the REINZ house price index as the property market adjusts to ever-tighter monetary policy.
  • RBNZ dated OIS is little changed this morning, pricing ~68bp of tightening for the Feb ’23 meeting and a terminal OCR of ~5.45%.
  • Tuesday’s session will once again be a case of scanning for any trans-Tasman impetus and assessing the Chinese COVID situation. Meanwhile, the proximity to the U.S. CPI print may limit liquidity/willingness to take on positions, with one eye also on this week’s domestic tier 1 risk events (the HYEFU & GDP data).
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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