NZGBS: Closed Richer But Well Off Best Levels, Negative Spillover From ACGBs Post-Jobs

NZGBs closed 1-4bps richer across benchmarks, but well off the session’s best levels after spillover from very strong Employment data in Australia. ACGBs currently sit 5-8bps cheaper than pre-jobs levels. NZGB benchmark yields were as much as 10-12bps lower early after the positive lead-in from US tsys following the FOMC meeting. Cash US tsys have extended the post-FOMC rally in today’s Asia-Pac session with the benchmarks dealing 1-2bps richer.

• Today’s weekly supply also potentially assisted the move cheaper through the session, after the cover ratios for the May-31 and Apr-33 bonds printed a relatively low 1.6x and 2.0x respectively.
• Spending on all cards rises 1.7% m/m (2.2% y/y) in February, according to the RBNZ.
• Swap rates closed 1-4bps lower, with the 2s10s curve steeper.
• RBNZ dated OIS has shunted lower with pricing 1-8bps softer across meetings. A cumulative 73bps of easing is priced by year-end.
• Tomorrow, the local calendar will see Trade Balance data for February.
• Before then, the market’s focus turns to Thursday's Weekly Claims, S&P Global US PMIs, Home Sales. Fed VC Barr fireside chat "View from the Fed", Q&A at 1200ET.