NZGBs Little Changed Early On

A pretty flat start for NZGBs, with yields ~1bp higher across the curve as participants look ahead to next week’s RBNZ decision as the next major staging post, outside of any swings derived from wider FI markets.

• Elsewhere, a reminder that 2-Year swap rates sit at the highest level observed since ’09, while the 10-Year swap rate has failed to breach its June high (with that peak representing the highest level observed since ’14), at least for now.
• The local docket is empty today, with the ANZ consumer and business surveys providing the domestic highlights through the remainder of the week.
• RBNZ terminal rate expectations are a handful of bp softer on the day at ~4.80%, with a 50bp hike at next week’s RBNZ decision more than fully priced (~53-54bp remains embedded in dated OIS).