NZGBS: Held Haven Bid Into The Close

NZGBs have held the Middle East conflict-induced haven bid for global bonds into the close, with benchmark yields 6-7bps lower, after dealing in a narrow range for the local session. With the local calendar empty today, local participants have been on headlines and US Tsys watch.

• US Tsys are holding close to session lows, however, there has been little follow-through on the initial move lower as of yet. There has been little in the way of meaningful macro news flow. Cash US Tsys sit 13-15bps richer across the major benchmarks after yesterday's Columbus Day holiday.
• Swap rates are 6-9bps lower, with the 2s10s curve slightly steeper.
• RBNZ dated OIS pricing is 1-5bps softer across meetings, with Jul'24 leading. Terminal OCR expectations soften to 3.70% from 3.73%.
• Bloomberg reports that NZ will change its dairy export quota allocations to be based on each company’s share of volume, says Agriculture Minister Damien O’Connor. (See link)
• Tomorrow, the local calendar sees Net Migration data, ahead of Food Prices on Thursday and Business NZ Mfg PMI and Card Spending on Friday.