© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BRIEF: 'Several' More ECB Rate Hikes Needed - Buba's Nagel

MNI BRIEF: Japan's Trimmed Mean Rises To 3.0% Vs. Mar 2.9%

MNI: PBOC Injects CNY2 Bln Via OMOs Tues, Liquidity Unchanged

MNI: TREASURY GENERAL ACCOUNT $68.3B MAY 22 VS $60.7B PREV DAY

US Treasury Auction Calendar

EZ/UK T-Bill Calendar: Italy & UK to issue Friday

MNI: Canada Resilient To US Debt Ceiling Clash- Freeland

MNI BRIEF: BOC Defends 2% Target, Senate Asks About Raising It

MNI INTERVIEW: Canada Budget Keeps BOC On Pause: Ex Official

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Market News Topics

NZGBS: Close On Cheaps As U.S Tsys Weaken

BONDS
HomepageBond Market NewsBulletMarketsFixed Income News

Today threatened to be a volatile session as the market caught up with developments in AU and U.S., and it didn't disappoint with the 2-year NZGB benchmark trading in a 10bp range (the 10-year traded in a more modest 4bp range). NZGB benchmarks close at session cheaps with Fed Chair Powell-induced U.S Tsy weakness the key driver. The 2/10 cash curve bear flattened with yields little changed to +7bp higher.

  • On a relative basis, the NZGB benchmarks outperformed U.S. Tsys with the 10-year yield differential -4bp tighter and the 2-year yield differential -12bp lower. Not surprisingly after recent RBA developments, the NZ/AU 10-year yield differential closed +4bp wider.
  • A similarly heavy session for swaps with rates 4-9bp higher, implying wider swap spreads, and the 2s10s curve 5bp flatter.
  • With the strongly divergent messages from the RBA and the Fed since the local close yesterday RBNZ-dated OIS has taken its cue from U.S. developments. Pricing is 3-9bp firmer across meetings with August leading. April pricing firms to 45bp of tightening. Equally noteworthy, terminal rate expectations have pushed well above the RBNZ’s projected OCR peak of 5.50% to ~5.60%.
  • The local calendar has card spending data for February scheduled on Thursday, while RBNZ Deputy Governor Hawkesby will appear at a private event, fleshing out the previous monetary policy decision (no new information will be divulged).
221 words

To read the full story

Why Subscribe to

MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Today threatened to be a volatile session as the market caught up with developments in AU and U.S., and it didn't disappoint with the 2-year NZGB benchmark trading in a 10bp range (the 10-year traded in a more modest 4bp range). NZGB benchmarks close at session cheaps with Fed Chair Powell-induced U.S Tsy weakness the key driver. The 2/10 cash curve bear flattened with yields little changed to +7bp higher.

  • On a relative basis, the NZGB benchmarks outperformed U.S. Tsys with the 10-year yield differential -4bp tighter and the 2-year yield differential -12bp lower. Not surprisingly after recent RBA developments, the NZ/AU 10-year yield differential closed +4bp wider.
  • A similarly heavy session for swaps with rates 4-9bp higher, implying wider swap spreads, and the 2s10s curve 5bp flatter.
  • With the strongly divergent messages from the RBA and the Fed since the local close yesterday RBNZ-dated OIS has taken its cue from U.S. developments. Pricing is 3-9bp firmer across meetings with August leading. April pricing firms to 45bp of tightening. Equally noteworthy, terminal rate expectations have pushed well above the RBNZ’s projected OCR peak of 5.50% to ~5.60%.
  • The local calendar has card spending data for February scheduled on Thursday, while RBNZ Deputy Governor Hawkesby will appear at a private event, fleshing out the previous monetary policy decision (no new information will be divulged).