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NZGBS: Closed Richer & At Best Levels


NZGBs concluded the session 2-4bps richer, reaching their peak levels for the day, accompanied by a steeper 2/10 curve. This movement marks a cumulative decline in benchmark yields of 15-25bps since the RBNZ decision last Wednesday. Additionally, the 2/10 curve has steepened by 10bps.

  • With today’s domestic data calendar relatively light, local participants have been content to extend strength sparked by Friday’s post-ISM rally in US tsys. This came despite US tsys dealing 1-2bps heavier in today’s Asia-Pac session. News flow has been light.
  • Today the NZ Government announced that it plans to spend NZ$20bn over three years on transport, including 15 new roads of national significance. It will raise the vehicle licensing fee in 2025 and 2026.
  • Swap rates closed flat to 3bps lower, with the 2s10s curve and the swap box flatter.
  • RBNZ dated OIS pricing is little changed. A cumulative 52bps of easing is priced by year-end.
  • Tomorrow, the local calendar sees NZ Government's 7-Month Financial Statements and ANZ Commodity Prices.

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