NZGBS: Little Changed, Light Local Calendar

In local morning trade, NZGBs are unchanged after another NY session of modest moves for US tsys. US yields ended a few basis points higher after hawkish comments from the Fed's Bowman, risk-on flows into the NASDAQ and a slightly better-than-expected labour market confidence.

• Federal Reserve Governor Michelle Bowman said it would likely be "some time" before the U.S. central bank can begin lowering interest rates, warning that U.S. monetary policy over the coming months could diverge from that of other advanced economies.
• The US Conference Board measure of consumer confidence was close to expectations. However, the labour market indicator rose for the first time this year, raising whether labour market conditions are deteriorating.
• Swap rates are little changed.
• RBNZ dated OIS pricing is little changed across meetings. A cumulative 31bps of easing is priced by year-end.
• Today, the local calendar is empty ahead of Consumer and Business Confidence tomorrow. Thursday will also see the NZ Treasury’s planned sale of NZ$250mn of the 4.5% May-30 bond, NZ$200mn of the 3.5% Apr-33 bond and NZ$50mn of the 2.75% Apr-37 bond.
• Today, the Australian calendar will see May’s CPI Monthly release. It is expected to post an increase of 3.8% y/y up from 3.6% the previous month.