NZGBS: Little Changed, Modest Gains From US Tsys After FOMC Minutes

In local morning trade, NZGBs are unchanged after modest gains from US tsys following another day of limited economic data.

• Expectations for the FOMC to begin easing policy on September 18 were reinforced by the BLS's downward revisions to nonfarm payrolls and dovish FOMC minutes.
• The Bureau of Labor Statistics reported that US payroll growth in the year to March was preliminarily revised down by 818k or 68k per month.
• The July FOMC minutes signalled that participants were eyeing a cut in September, with "several" seeing it as "plausible" to cut already in July. There weren't many clues in the minutes on future monetary policy beyond that, with no mention of a potential >25bp cut.
• The US 2-year yield declined 5bps to 3.93%, after reaching a session low of 3.88% after the FOMC minutes.
• NZ's government announced a proposal to encourage local councils to invest more in necessary infrastructure and at the same time sent a message to mayors to stop frivolous spending. (per BBG)
• Swap rates are little changed.
• RBNZ dated OIS pricing is little changed. A cumulative 72bps of easing is priced by year-end.
• Today, the local calendar is empty, ahead of Q2 Retail Sales Ex Inflation data tomorrow.