NZGBS: Cheaper, BoJ & FOMC Policy Decisions Tomorrow

NZGBs closed on a weak note, with benchmark yields 2-4bps higher and the 2/10 curve steeper.

• (Bloomberg) New Zealanders are about to keep more of what they earn as the new government follows through on an election promise to cut taxes despite a deepening budget deficit and advice from the OECD that the measures should be delayed. (See link)
• "CoreLogic NZ is introducing a new measure of real estate values that it says will reflect changes in the housing market sooner. The Home Value Index will replace the House Price Index on August 1." (per BBG)
• Cash US tsys are little changed in today’s Asia-Pac session.
• This week will see policy decisions from the BoJ, BoE and Fed alongside top-tier economic releases including the US Non-Farm Payrolls report and Employment Cost Index, Euro Area CPI and GDP, Australian CPI and China PMI.
• Swap rates are 3-5bps higher.
• RBNZ dated OIS pricing is slightly firmer across meetings, with a cumulative 75bps of easing priced by year-end.
• Tomorrow, the local calendar will see Building Permits and ANZ Business Confidence data.
• On Thursday, the NZ Treasury plans to sell NZ$300mn of the 4.50% May-30 bond, NZ$150mn of the 4.25% May-34 bond and NZ$50mn of the 2.75% Apr-37 bond.