NZGBS: Little Changed Heading Into Easter Weekend

In local morning trade, NZGBs are 2bps richer on the last day of trading for the week after US tsys firmed 2-5bps across benchmarks. In the absence of data catalysts, the move appeared driven by month-end extensions and a strong 7-year tsy auction.

• The issue yield (4.185%) was 0.8bp below the W/I of 4.193% at the auction deadline. The bid to cover (2.61) rose from Feb's 2.58 and indirect bidders (69.7%) rose from Feb's 69.6%.
• Equities and the dollar also rallied heading into quarter-end and the long Easter holiday weekend. The S&P 500 climbed 0.89% to 5248, the 21st new high for 2024. DXY closed at 104.29, the fifth straight day over the 104 mark.
• Fed Governor Christopher Waller will discuss his economic outlook at an event hosted by the Economic Club NY at 1800ET, text and Q&A is expected.
• Swap rates are 3-4bps lower.
• RBNZ dated OIS pricing is little changed. A cumulative 69bps of easing is priced by year-end.
• ANZ's Consumer Confidence Index fell 8.6% m/m to 86.4 in March from 94.5 in February.
• Today, the local calendar will also see ANZ Business Confidence.
• The NZ Treasury plans to sell NZ$275mn of the 3% Apr-29 bond and NZ$225mn of the 4.25% May-34 bond today.