NZGBS: Cheaper After US Tsys Finish Mid-Range Following Payrolls Data

In local morning trade, NZGBs are flat to 4bps cheaper, after US tsys finished Friday’s session near the middle of a wide range following the release of Non-Farm Payrolls. The data was deemed 'noisy', with the higher-than-expected jobs gain tempered by downward revisions for the two prior releases (Dec jobs gain of 216k vs. 175k est, prior revised to 173k from 199k).

• The move away from session cheaps was also aided by lower-than-expected ISM services data (50.6 vs. 52.5 est), ISM Services Employment (43.3 vs. 51.0 est) and Services New Orders (52.8 vs. 56.1 est).
• The vast U.S. services sector is set to sustain modest growth in coming months despite a surprisingly poor end to last year, with possible Federal Reserve rate cuts helping to stimulate demand later in the year, Institute for Supply Management chair Anthony Nieves told MNI on Friday.
• Traders now await this week's CPI and PPI inflation measures on Thursday and Friday respectively.
• Swap rates are 3bps higher.
• RBNZ dated OIS pricing is little changed across meetings.
• The local calendar is relatively light this week, with House Prices, Commodity Prices and Building Permits as the highlights. The calendar is empty today.