NZGBS: Cheaper, Tracking US Tsys Ahead Of Fed Chair Powell’s Testimony (Wed)

NZGBs closed at or near the session’s worst levels, with benchmark yields 1-3bps higher.

• With the domestic calendar relatively light, local participants appear to have been content to monitor US tsys for directional guidance ahead of Fed Chairman Powell's policy testimony to Congress Wed-Thu and the Payrolls Report Friday.
• US tsys are currently dealing flat to 1bp cheaper in today’s Asia-Pac session.
• NZ Finance Minister Nicola Willis said “Lower-than-expected tax revenue is consistent with the economy being weaker than forecast in the half-year update” in response to questions in parliament.
• (Bloomberg) -- NZ population growth is masking weakness in consumer demand, the Treasury Dept. says in Fortnightly Economic Update. Per capita retail trade volumes fell 2.6% q/q in Q4. (See link)
• NZ’s commodity export prices rose 3.5% m/m in February versus a revised +2.1% in January, according to ANZ Bank.
• Swap rates finished with a twist-flattening. Rates closed 1bp higher to 1bp lower.
• RBNZ dated OIS pricing closed flat to 5bps firmer, with Feb-25 leading. A cumulative 48bps of easing is priced by year-end.
• Tomorrow, the local calendar sees the Volume of All Buildings for Q4.