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NZGBs A Touch Cheaper To Start

BONDS

Cash NZGBs have cheapened at the margin given the move in U.S. Tsys during Thursday’s post-NZ session dealing, running 1-3 cheaper across the curve, with modest bear steepening in play (note that Tsys bear flattened on Thursday). Meanwhile, swap rates are ~1bp higher cross the curve, leaving swap spreads flat to a touch narrower, extending the post-NZGB inclusion in the WGBI trend.

  • RBNZ dated OIS pricing is little changed today, looking for just over 70bp of tightening at this month’s meeting and a terminal OCR of just over 5.25%.
  • The domestic docket is empty on Friday, which will leave global matters at the fore in the final trading session of the week.
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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