NZGBs Cheaper Early On, Lower Tier Local Data Due

NZGB yields run 6-8bp higher early on Tuesday, with some light bear steepening seen, playing catch up to the weakness observed in wider core FI markets on Monday.

• Monday’s sell off in core global FI markets was initially centred on UK Gilts, with the BoE’s latest mitigation measures (doubling the size of its Gilt purchase scheme for the rest of the week and introducing the Temporary Expanded Collateral Repo Security Facility to aid funding needs amongst LDI pension funds) failing to soothe the nerves of market participants as the release of the OBR’s official forecasts was officially bought forward.
• A BBG source report then suggested that Germany supports joint EU debt for loans to provide support during the current energy crisis, which applied further pressure to core global FI markets, before a denial via a RTRS sources piece allowed some of that move to reverse.
• Domestically, the already released ANZ Truckometer heavy reading recorded a 3.3% M/M fall in Sep, while card spending data is due shortly.
• RBNZ terminal rate pricing continues to hover between 4.80-4.85%, per dated OIS>