NZGB Yields Tick Higher, Catching Up To Tuesday’s FI Moves

NZGB yields adjusted to the cheapening impetus observed in wider core global FI markets on Tuesday at the re-open, then stuck to narrow ranges, with global core FI markets generally muted ahead of the latest FOMC decision, outside of some limited gyrations around an unscheduled round of JGB purchases from the BoJ.

• This left NZGBs to meander through the local session, as yields finished 5-7bp cheaper across the curve, with some light bear steepening evident, going against the recent flattening theme.
• There wasn’t any notable movement in RBNZ OIS pricing, with a terminal rate of ~4.50% still embedded into markets.
• The latest round of monthly trade balance data and the Westpac consumer confidence print headline the domestic docket on Thursday.
• Also note that a national holiday in Australia will limit regional liquidity on Thursday.