Free Trial

NZGBS: Auction Dynamics Promote Twist Flattening

BONDS

The NZGB curve has twist flattened, with the major benchmarks running 4bp cheaper to 1bp richer at typing, pivoting around 10s. NZGBs were on the defensive ahead of today’s NZGB auctions, with global core FI markets coming under modest cheapening pressure. That was before an uncovered NZGB-27 auction applied further pressure to the front end of the curve, while solid enough demand in the NZGB-34 auction (1.64x cover) and strong demand at the NZGB-51 auction (2.96x cover) has facilitated the twist flattening bias. Swap rates are 4-5bp higher on the day, leaving swap spreads wider across the curve, albeit to varying degrees.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.