Free Trial

NZGBs: Bear Flattening On Tuesday

BONDS

Weakness in NZGBs extended throughout the day as the space more than unwound yesterday’s WGBI inclusion-related bid.

  • The major benchmarks finished 7.5-12.5bp cheaper across the curve, bear flattening, going out around cheapest levels of the session.
  • Swap spreads were mixed, narrowing a touch at the shorter end, while they were wider to flat further out.
  • RBNZ dated OIS pricing was little changed on the day.
  • We suggest that some trans-Tasman spill over from the weaker ACGB complex ahead of today’s RBA decision may have aided today’s cheapening.
  • Looking ahead, Wednesday’s local docket will see the release of the latest quarterly labour market report, CoreLogic house price data and the RBNZ’s FSR.
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.