NZGBS: Firmer On Global Impetus

The benchmark NZGBs were 13bp richer across the curve come the close of Thursday’s session in what was a parallel shift, shifting firmer in lieu of Wednesday’s move in core global FI markets, before an ACGB-led bid provided fresh legs to the move as the day wore on.

• Swap rates were 10-13bp lower across the curve, moving in sympathy with NZGBs, leaving swap spreads a little wider to unchanged on the day, while the swap curve flattened.
• The major near-term RBNZ dated OIS pricing points were little changed to a touch softer, showing 65bp of tightening for the Feb ’23 meeting, alongside a terminal OCR of just below 5.50%.
• Local headline flow was particularly limited, with a continued pullback in the BNZ/SEEK job advertisements metric probably providing the highlight.
• Looking ahead, the local docket is empty for the remainder of the week, with focus squarely on the U.S. CPI release that will cross in Thursday’s NY session.