Free Trial

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

BONDS

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.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.