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NZGBS: Cheaper, US Tsys Weaken After PMIs and Jobless Claims

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In local morning trade, NZGBs are 4bps cheaper after US tsys extended recent losses on Thursday. Stronger-than-expected PMIs and another tight claims report further pushed back Fed easing expectations.

  • Services PMI (54.8 vs. 51.2 est) and Composite PMI (54.4 vs. 51.2 est) while Manufacturing PMI was slightly higher (50.9 vs. 49.9 est).
  • Weekly claims were lower than expected at 215k vs. 220k est, prior revised to 223k from 222k.
  • Short-end US tsys underperformed with the 2-year rate climbing 6bps to 4.94%. The 10-year cheapened 5bps to 4.48%. A poor 10-year TIPS auction left the market heavy.
  • NZ's trade surplus narrowed to NZ$91mn in April from a revised +NZ$476mn in March. The 12-month YTD trade deficit widened to NZ$10.114bn from a revised -NZ$9.984bn in March.
  • ANZ Consumer Confidence for May rose 2.8pts to 84.9.
  • Swap rates are 4-5bps higher.
  • RBNZ dated OIS pricing is 3-5bps firmer for meetings beyond October. A cumulative 21bps of easing is priced by year-end.
  • Looking ahead to Friday's US data calendar, the focus will be on Durables/Cap Goods and the latest UofM Sentiment.
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In local morning trade, NZGBs are 4bps cheaper after US tsys extended recent losses on Thursday. Stronger-than-expected PMIs and another tight claims report further pushed back Fed easing expectations.

  • Services PMI (54.8 vs. 51.2 est) and Composite PMI (54.4 vs. 51.2 est) while Manufacturing PMI was slightly higher (50.9 vs. 49.9 est).
  • Weekly claims were lower than expected at 215k vs. 220k est, prior revised to 223k from 222k.
  • Short-end US tsys underperformed with the 2-year rate climbing 6bps to 4.94%. The 10-year cheapened 5bps to 4.48%. A poor 10-year TIPS auction left the market heavy.
  • NZ's trade surplus narrowed to NZ$91mn in April from a revised +NZ$476mn in March. The 12-month YTD trade deficit widened to NZ$10.114bn from a revised -NZ$9.984bn in March.
  • ANZ Consumer Confidence for May rose 2.8pts to 84.9.
  • Swap rates are 4-5bps higher.
  • RBNZ dated OIS pricing is 3-5bps firmer for meetings beyond October. A cumulative 21bps of easing is priced by year-end.
  • Looking ahead to Friday's US data calendar, the focus will be on Durables/Cap Goods and the latest UofM Sentiment.