NZGBS: Little Changed, US Tsys Twist-Flatten After Solid 20Y Auction

In local morning trade, NZGBs are flat to 1bp richer as US tsy futures finished near post-20Y auction highs. The 20-year supply saw better than feared demand metrics. The US tsy curve twist-flattened, pivoting at the 5s, with yields 3bps higher to 3bps lower.

• Little reaction to Richmond Fed President Barkin's comments on Fox: "NOW ISN'T BIG TIME FOR FORWARD GUIDANCE ON RATES; OVERALL, CORE INFLATION NUMBERS COMING DOWN NICELY," while Barkin focuses "ON INFLATION TO DECIDE RATE MOVES".
• Wall Street enjoyed a bullish session, kicking off the holiday-abbreviated week. The NASDAQ climbed over 1%, while the S&P 500 advanced 0.7% to 4547.
• Swap rates are flat to 2bps lower, with the 2s10s curve flatter.
• RBNZ dated OIS pricing is little changed, with terminal OCR expectations sitting at 5.54%.
• The trade deficit narrowed to NZ$1.709b in October from a revised -NZ$2.425b in September. The annual trade deficit narrowed to NZ$14.805b from a revised -NZ$15.412b in September.
• ICYMI, Bloomberg reported negotiations to form the next New Zealand government neared a conclusion after the National Party secured agreement on key policies with its two partners. (See link)
• The local calendar’s next release is Q3 Retail Sales Ex-Inflation on Friday.