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NZGBS: Firmer On Global Impetus

BONDS

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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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