NZGBS: Q4 CPI Prints In Line With Expectations, NZGBs Cheaper With US Tsys

In local morning trade, NZGBs are little changed after Q4 CPI prints in line with expectations at +0.5% q/q and 4.7% y/y. Q4 Tradable Prices fall 0.2% q/q, with Non-Tradable Prices up 1.1% q/q.

• NZGB benchmark yields had been 2-4bps higher in pre-CPI dealings after US tsys drifted cheaper during the NY session without first-tier economic data.
• The big event on Tuesday globally was a Bloomberg news story that Chinese authorities were considering a range of measures to help stabilise equity markets. Hang Seng China Enterprises Index (HSCEI) jumped almost 3% on the day but it is still around 10% lower this year.
• Swap rates are 2-3bps higher on the day.
• RBNZ dated OIS pricing is flat to 3bps firmer across meetings. A cumulative 89bps of easing is priced by year-end.
• Today, the NZ Treasury announced plans for five nominal bond auctions in February, with each weekly auction offering being NZ$500m of bonds. The NZDM also said that it expected a new May 2054 nominal bond will be launched, via syndication, before March 31. With five Thursdays in February due to the leap year, February’s issuance will total NZ$2.5bn.