Free Trial

NZGBS: Bull-Flattening After Mixed Results From Weekly Auctions

BONDS

NZGB curve closed with a bull-flattening (flat to 2bps richer) after today’s weekly supply saw mixed results across the lines. The May-32 and May-41 lines saw cover ratios over 3.00x, while the Apr-27 bond saw cover at a poor 1.69x (3.80x previously).

  • In addition to the previously outlined Manufacturing Volume data, the RBNZ published new credit flow figures for January. Total New Lending fell 2.1% y/y, while New Residential Lending rose 9.2%y/y.
  • Cash US tsys are 1-2bps cheaper in today’s Asia-Pac session after yesterday’s post-Powell bull-flattening. Later today sees Weekly Claims, Unit Labor Cost, and day two of Chair Powell's testimony, ahead of Non-Farm Payrolls on Friday.
  • Swap rates closed 2-3bps lower, with the 2s10s curve flatter and implied swap spreads narrower.
  • RBNZ dated OIS pricing is 1-5bps softer across meetings beyond July. A cumulative 52bps of easing is priced by year-end.
  • Tomorrow, the local calendar is empty.
  • RBNZ Governor, Adrian Orr and Chief Economist, Paul Conway will speak about the February Monetary Policy Statement at separate events over 12-14 March 2024.

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.