Free Trial
AUDUSD TECHS

Northbound

US TSYS

Late SOFR/Eurodollar/Treasury Option Roundup

EURJPY TECHS

Holding On To Its Recent Gains

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NZGBS: Global Bias Applies Modest Cheapening Pressure

BONDS

The move higher in U.S. Tsy & German Bund yields observed at the backend of last week spilled over into Monday trade, subsequently applying some pressure to NZGBs in early Tuesday dealing, with the benchmarks running 3.0-4.5bp cheaper as the curve bear steepens.

  • Swap rates are flat to 2bp higher, back from their early session highs.
  • Local data flow has seen a slowing in the rate of expansion in the latest BusinessNZ PSI print, with the collators noting that “December marked a significant slowdown in a short space of time for the PSI, although the loftiness in New Orders/Business suggested there was still a lot of demand- side pressure at play.”
  • Political matters continue to dominate headlines, but these are second order (at best) considerations for markets given the domestic and macro backdrops.
  • Tomorrow’s Q4 CPI data presents the domestic highlight of the week, with near-term RBNZ dated OIS pricing steady this morning, showing ~65bp of tightening for next month’s meeting, alongside a terminal OCR of just over 5.45%.
169 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The move higher in U.S. Tsy & German Bund yields observed at the backend of last week spilled over into Monday trade, subsequently applying some pressure to NZGBs in early Tuesday dealing, with the benchmarks running 3.0-4.5bp cheaper as the curve bear steepens.

  • Swap rates are flat to 2bp higher, back from their early session highs.
  • Local data flow has seen a slowing in the rate of expansion in the latest BusinessNZ PSI print, with the collators noting that “December marked a significant slowdown in a short space of time for the PSI, although the loftiness in New Orders/Business suggested there was still a lot of demand- side pressure at play.”
  • Political matters continue to dominate headlines, but these are second order (at best) considerations for markets given the domestic and macro backdrops.
  • Tomorrow’s Q4 CPI data presents the domestic highlight of the week, with near-term RBNZ dated OIS pricing steady this morning, showing ~65bp of tightening for next month’s meeting, alongside a terminal OCR of just over 5.45%.