October 03, 2022 03:58 GMT
NZGBs held onto the bulk of their early richening, leaning on Friday’s bid in Gilts and Asia-Pac richening in U.S. Tsys as sources of support in a headline-light session.
- That left the major NZGB benchmarks running 1.0-6.5bp richer across the curve at the close of Monday trade, with bull steepening in play.
- Focus remains on Wednesday’s RBNZ decision, with a 50bp hike widely universally expected and fully discounted by OIS. The Bank’s rhetoric will therefore be key for the space, with a terminal rate of ~4.85% currently priced (little changed on the day).