MNI BRIEF: Japan June Services PPI Rises 3.0% Vs. May's 2.7%

BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

MNI: JAPAN JUNE SERVICES PPI +3.0% Y/Y; MAY REV +2.7%

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NZGBS: Post-RBNZ Sell-Off Continued

BONDS
Data BulletDataHomepageBulletMarketsFixed Income Bullets

NZGBs closed 6-8bps cheaper, with the short-end underperforming. The stronger-than-expected Q1 Retail Sales excluding Inflation likely contributed but the primary driver was yesterday's announcement from the RBNZ that it expects to maintain tight monetary policy for longer due to domestic inflation pressures. (See MNI RBNZ Review here)

  • Additionally, lacklustre demand at today's weekly supply, with cover ratios for the three lines at or below 2.00x, further impacted the market.
  • Comments from Federal Reserve officials in the May FOMC minutes, indicating that US interest rates will need to stay higher for longer to combat persistent inflation, also weighed on NZGBs.
  • 2-, 5- and 10-year yields are a cumulative 15bps, 11bps and 10bps higher respectively than pre-RBNZ levels.
  • Swap rates closed 3-8bps higher, with the 2s10s curve flatter.
  • RBNZ dated OIS has continued to firm with pricing being 7-13bps firmer for meetings beyond October. Additionally, these meetings are now 18-23bps firmer than before the RBNZ Decision.
  • The local calendar will see ANZ Consumer Confidence and Trade Balance data tomorrow.
  • Later today, the US calendar will release the Chicago Fed Nat Activity Index, Jobless Claims and S&P Global US PMIs.
184 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

NZGBs closed 6-8bps cheaper, with the short-end underperforming. The stronger-than-expected Q1 Retail Sales excluding Inflation likely contributed but the primary driver was yesterday's announcement from the RBNZ that it expects to maintain tight monetary policy for longer due to domestic inflation pressures. (See MNI RBNZ Review here)

  • Additionally, lacklustre demand at today's weekly supply, with cover ratios for the three lines at or below 2.00x, further impacted the market.
  • Comments from Federal Reserve officials in the May FOMC minutes, indicating that US interest rates will need to stay higher for longer to combat persistent inflation, also weighed on NZGBs.
  • 2-, 5- and 10-year yields are a cumulative 15bps, 11bps and 10bps higher respectively than pre-RBNZ levels.
  • Swap rates closed 3-8bps higher, with the 2s10s curve flatter.
  • RBNZ dated OIS has continued to firm with pricing being 7-13bps firmer for meetings beyond October. Additionally, these meetings are now 18-23bps firmer than before the RBNZ Decision.
  • The local calendar will see ANZ Consumer Confidence and Trade Balance data tomorrow.
  • Later today, the US calendar will release the Chicago Fed Nat Activity Index, Jobless Claims and S&P Global US PMIs.