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NZGBs Little Changed To Marginally Cheaper, RBNZ OIS Little Changed

BONDS

Cash NZGBs are 2bp cheaper to little changed on the day, with the curve seeing some light bear flattening as spill over from the post-RBA weakness in ACGBs is largely cancelled out by a modest round of richening in U.S. Tsys.

  • Swap rates are a touch higher to a touch lower as that curve twist flattens, resulting in mixed swap spread performance across the curve.
  • RBNZ dated OIS hovers around levels observed late on Tuesday, with just over 60bp of tightening priced for the Bank’s Feb ’23 meeting, with a terminal OCR of 5.35% currently baked in.
  • The local docket is empty today.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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