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NZGBs Cheaper At The Margin, Payside In Swaps Continues

BONDS

A fairly flat start for NZGBs leaves the major benchmarks running ~1.5bp cheaper, as participants assess overnight developments in the wake of Tuesday’s CPI-driven hawkish repricing of RBNZ expectations.

  • Swap spreads are a touch wider, with swap rates moving back towards their respective cycle peaks in early Wednesday trade.
  • RBNZ dated OIS price a terminal OCR of ~5.25%, just over 10bp shy of yesterday’s post-CPI peak, with a 75bp hike at next month’s meeting fully priced.
  • The local docket is empty today, which will leave wider sentiment and headline flow at the fore.
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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