NZGBS: Cheaper, Solid US 30Y Auction, Light Local Calendar

In local morning trade, NZGBs are 3bps cheaper after US tsy yields pushed 3-5bps higher, with the 5-7-year bucket leading. Rates ticked lower after Initial Jobless Claims recorded a seasonally adjusted 218k (cons 220k) in the week to Feb 3 after last week’s surprise increase was revised a little higher to 227k (initial 224k).

• Fed speak: the Federal Reserve has time to wait before cutting interest rates as the economy remains strong even as inflation falls, Richmond Fed President Thomas Barkin said Thursday. “You don’t have to be in any particular hurry. We’ve got some time to be patient,” Barkin said in an interview with Bloomberg TV.
• The $25bn 30Y supply showed sold demand metrics, with the auction stopping through for the third time this week: 4.360% high yield vs. 4.380% WI. Decent to strong demand greeted supply all week, with all three coupon auctions stopping through, which hasn't occurred since January 2023. Post-30Y auction support, however, was unwound by the close.
• Swap rates are 3-4bps higher.
• RBNZ dated OIS pricing is little changed. A cumulative 69bps of easing is priced by year-end.
• Today, the local calendar is empty. Coming up at 9.30 am AEDT time, we have the Australian RBA Governor Bullock speaking.