NZGBS: Marginally Cheaper, Lagging Wider Move Seen Since Close

NZGB yields nudge higher in early trade given the lead from U.S. Tsys and German Bunds, with the fairly parallel 2bp of cheapening observed across the curve a little more limited than the moves witnessed in the major core global FI markets on Tuesday, and indeed vs. ACGBs.

• Swap rates are also 2bp higher, leaving swap spreads flat in early dealing.
• RBNZ dated OIS is unchanged when it comes to Feb ’23 meeting pricing, with 66bp of tightening eyed. Meanwhile, terminal OCR pricing continues to operate either side of 5.50% in the early rounds of ’23 trade.
• Supra Kauri issuance has been launched, in the form of 7-Year sustainable paper from IADB.
• Local headline flow remains subdued to start the year.
• Local lower tier data saw an eighth straight M/M gain for filled jobs, with the latest ANZ commodity price index reading due later in the day. That will leave broader impulses, including cross-market moves and Australian data, at the fore through Wednesday’s session.