NZGBS: Modestly Weaker Ahead Of U.S. PCE

NZGBs opened 1bp cheaper, following a mixed close in U.S. Tsys in NY trade. The 10-year Tsy yield was slightly lower, while the 2-year yield was slightly higher, as expected easing in the second half of the year continued to be scaled back. Although Fed officials' comments were generally hawkish, the markets mostly ignored them and instead focused on PCE data, which will be released later today.

• The swaps curve has steepened by 3bp, with rates flat to +3bp. This implies a steeper swap spread box.
• RBNZ dated OIS opened little changed across meetings. The April meeting is priced for a 25bp hike, with terminal OCR expectations at 5.27%.
• According to a Reuters poll of economists, the RBNZ will scale back to a 25bp hike next week. However, economists are split on whether there will be another 25bp hike in May.
• Today's local calendar is light after ANZ Consumer Confidence printed weaker in March. Confidence remains low due to higher interest rates and the rising cost of living.
• In Australia, Private Sector Credit for February is slated for release.
• After a relatively quiet few days, the global calendar heats up with the release of Euro Area CPI (Mar) and U.S. PCE deflator (Feb).