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NZGBS: Closed On A Positive Note After Friday’s Holiday

BONDS

NZGBs closed on a strong note, with benchmark yields 2-3bps lower compared to Thursday’s close. The local market was closed for a holiday on Friday.

  • With the local calendar relatively light, the move away from morning cheaps has been assisted by a bull-steepening in US tsys in today’s Asia-Pac session. Cash benchmarks are currently 1-3bps richer after being as much as 2bps cheaper in early dealings.
  • Swap rates closed 1-4bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing closed flat to 4bps softer across meetings, with 2025 meetings leading. A cumulative 30bps of easing is priced by year-end.
  • Tomorrow, the local calendar will see the NZIER Business Opinion Survey results and Building Permits data, ahead of ANZ Commodity Prices on Wednesday.
  • On Thursday, the NZ Treasury plans to sell NZ$225mn of the 1.5% May-31 bond, NZ$175mn of the 4.25% May-34 bond and NZ$100mn of the 1.75% May-41 bond.

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