NZGBS: Cheaper, Subdued NY Session For US Tsys, Weekly Bond Auctions

In local morning trade, NZGBs are 5bps cheaper after a quiet session for first-tier US economic releases. US tsys finished 2bps cheaper across benchmarks after holding in narrow ranges.

• There was a continued focus on Fed speakers: Fed Kashkari popped up in morning trade positing that 2-3x 25bp cuts this year "seems appropriate". Fed Kugler said she could not close the door to policy action at any upcoming meetings, including March, “Every meeting is live". Fed Collins said waiting until 12-month inflation hits 2% for the central bank to begin cutting interest rates would be waiting too long.
• US tsys pared weakness following a decent $42B 10Y sale stopped 1.2bp through: 4.093% high yield vs. 4.105% WI; 2.56x bid-to-cover steady to prior.
• Thursday's US calendar sees Weekly Claims, Fed Speak and a 30Y auction.
• Swap rates are 5bps higher.
• RBNZ dated OIS pricing is flat to 6bps firmer, with November leading. A cumulative 66bps of easing is priced by year-end compared to 96bps last Friday.
• Today, the local calendar is empty, but the NZ Treasury plans to sell NZ$275mn of the 1.5% May-31 bond, NZ$150mn of the 3.5% Apr-33 bond and NZ$75mn of the 2.75% Apr-37 bond.