NZGBS: Little Changed, Nvidia Earnings Disappoint

In local morning trade, NZGBs are slightly richer after US tsys finished with a modest twist-flattening of the 2/10 curve ahead of Nvidia’s results after the market close.

• (AFR) “Nvidia reported revenue for the second quarter of $US30.0 billion, up 15 per cent from the previous quarter and up 122 per cent from a year ago. It said it expects third-quarter revenue to be $US32.5 billion, plus or minus 2 per cent." Shares of the company are ~9% lower in after-hours trade.
• Atlanta Fed Pres. Bostick aftermarket said: that there is still a distance to go on inflation; the labour market is still quite strong by historical standards; we cannot wait until inflation is 2% to move away from a restrictive stance; inflation has come down faster than expected, unemployment has risen farther than thoughts; this means we should pull forward rate cut to third-quarter.
• Swap rates are unchanged.
• RBNZ dated OIS pricing is little changed. A cumulative 72bps of easing is priced by year-end.
• Today, the local calendar will see ANZ Business Confidence ahead of ANZ Consumer Confidence and Building Permits tomorrow.
• The NZ Treasury also plans to sell NZ$250mn of the 4.50% May-30 bond, NZ$200mn of the 4.50% May-35 bond and NZ$50mn of the 2.75% May-51 bond.