Free Trial

NZGBS: Closed Richer Ahead Of Easter Weekend Despite A Cheapening In US Tsys

BONDS

NZGBs closed 3bps richer and just off the session's best levels. This came despite cash US tsys cheapening 1-4bps in today’s Asia-Pac session following aftermarket comments from the Federal Reserve Governor Waller.

  • Fed Waller said the Fed should wait a "couple months" to get a better understanding of the trajectory of inflation, but he still expects the central bank to begin reducing the target range for the federal funds rate this year. (See MNI link)
  • The move away from session cheaps was likely aided by decent demand metrics at today’s weekly supply. Bid cover ratios printed 2.25x to 2.92x for the Apr-29 and May-34 lines respectively.
  • ANZ Business Confidence lost 11.8 points from a month earlier to 22.9 in March.
  • (Bloomberg) -- NZ appointed Carl Hansen and Prasanna Gai to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis says in an emailed statement. (See link)
  • Swap rates closed 2-5bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing closed 2-3bps softer for meetings beyond May. A cumulative 71bps of easing is priced by year-end.
  • The local market is closed until next Tuesday for the Easter long weekend.
  • Later today, the US calendar sees Weekly Claims, GDP, PCE, PMI and UofM Sentiment.

To read the full story

Close

Why 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.