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NZGBS: Firmer On Strong Cover Ratios At Weekly NZGB Supply

BONDS

Strong cover of 3.08-6.25x was seen at the weekly NZGB auctions, with NZGB May-26 seeing the firmest demand, likely on worry re: RBNZ overtightening and related recessionary angst. NZGBs richen in the wake of the auction results, with the major benchmarks running 3.0-7.5bp richer, as the curve bull steepens. Swap rates continue to outperform in the front end of the curve, leaving swap spreads through 5s running tighter on the day, while there has been some widening in swap spreads further out the curve in the wake of the auction results.

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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