NZGBS: Marginally Cheaper Come The Close, Early Cheapening Holds

There was little in the way of net movement for NZGBs after the early modest cheapening that came in the wake of Thursday’s light cheapening in core global FI markets. That left the major NZGB benchmarks ~3bp cheaper across the curve at the close, while swap rates were ~2bp higher across the term structure. RBNZ dated OIS is little changed on the day, with Feb ’23 meeting pricing indicating just over 70bp of tightening, alongside a terminal OCR of ~5.55%.

• We didn’t receive any notable domestic news flow, with macro headlines also on the light side.
• There isn’t anything in the way of meaningful domestic points of note slated between Christmas and the turn of the year.