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NZGB Yields Nudge Higher Post-Labour Market Data, RBNZ Pricing Firms A Touch

BONDS

Firmer than expected employment growth and average hourly earnings readings within the latest labour market report have outweighed the unchanged unemployment rate (expectations were for a 0.1ppt downtick), with NZGBs cheapening a touch in the wake of the data, to now print ~3bp cheaper across the curve.

  • 72bp of tightening is now priced for this month’s RBNZ decision in the wake of the data, incrementally higher, with terminal OCR pricing now up to ~5.25%, ~5bp above pre-data levels on the back of the firmer AHE and employment growth data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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