NZGBS: Little Changed, US PCE Deflator Printed In Line, RBNZ Gov Orr Speech Today

In local morning trade, NZGBs are unchanged after US tsys finished the NY session 1-2bps richer. The US 10-year yield finished 1bp lower at 4.26% after pushing as high as 4.32% ahead of the PCE deflator data.

• The US PCE deflator, which is the Fed’s preferred inflation gauge, printed in line with market expectations, with the core measure up 0.4% m/m and 2.8% y/y. This confirmed the jump in inflation in January, as foreshadowed by prior CPI and PPI data.
• Initial Jobless Claims were higher than expected (215k vs. 210k est).
• Fed speak remained balanced while leaning toward cut(s) in 2H'24. Fed Bostic reiterated that the central bank is likely going to be in a position to begin easing interest rates sometime in the summer.
• ANZ Consumer Confidence index rose to 94.5 in February from 93.6 in January.
• Home-Building Approvals fell 8.8% m/m in January.
• (Reuters) RBNZ Deputy Governor Hawkesby said inflation was on the path toward the centre of its 1% to 3% target band, but the central bank had to stay the course to be sure.
• Swap rates are 1bp higher.
• RBNZ dated OIS pricing is little changed.
• Today, the local calendar also sees a speech from RBNZ Governor Orr to the Canterbury Chamber of Commerce.