NZGBS: Little Changed, US Tsys Slightly Cheaper Ahead Of Today’s NFP Data

In local morning trade, NZGBs are 1bp richer with US tsys cheaper beyond the 2-year. US yields are currently dealing 1bp richer to 4bps cheaper after a directional session. There was a delayed bid in rates after in-line weekly jobless claims data spurred buying/short covering ahead of Friday's headline employment data. However, that positive impetus faded later in the session.

• Initial Jobless Claims printed in line with expectations: 220k vs. 220k est, 219k prior revised from 218k), Continuing Claims lower than expected: 1.861M vs. 1.910M est, 1.925M prior/revised.
• The Atlanta Fed GDPNow tracker for Q4 reversed yesterday’s minor increase, now seen back at 1.2% for the joint lowest seen in the Q4 vintage. It follows the sharp 5.2% increase seen in Q3, which followed an average 2.2% annualized in 1H23.
• The focus remains on Friday’s Non-Farm Payrolls data for November after this week's lower-than-expected JOLTS and ADP data rekindled early 2024 rate cut projections. Bloomberg consensus sees nonfarm payrolls growth of 186k in November, up from 150k in October.
• Crude prices have struggled for direction today, with WTI largely unchanged.
• Swap rates are 1-2bps higher.
• RBNZ dated OIS pricing is unchanged across meetings.
• Today, the local calendar sees Q3 Manufacturing Activity.