NZGBS: Little Changed After A Lacklustre NY Session Ahead Of US CPI Data

In the local morning trade, NZGBs have shown minimal movement following a relatively uneventful data-limited NY session. The sole items on the calendar were the 3-year and 10-year US tsy auctions, which fell short of expectations with tails of 1.8bps and 1.4bps, respectively. Initially, the market cheapened but rebounded, leading to a twist-steepening of the curve, pivoting at the 2s, with yields from 1bp lower to 2bps higher.

• With so much to come over the coming days, investors have kept to the sidelines ahead of US inflation data later today and the Fed decision on Wednesday. While the decision is unlikely to surprise, the dot plot, forecasts and the press conference may well.
• This week also sees ECB and BOE policy meetings before the BOJ policy decision next Tuesday.
• Swap rates are flat to 1bp lower.
• RBNZ dated OIS pricing is little changed out to Aug’24 and 1-2bp firmer beyond.
• Total Spending on debit and credit cards for November showed an increase of 0.8% m/m and +3.3% y/y. Retail Card Spending rose 1.6% m/m.
• Net migration data for October showed the largest net gain on record, with 128,919 people for the year ended Oct 31. The gain followed a revised 125,222 increase in the year through September.