Free Trial

NZGBS: Richer, 5Y Outperforms, Business Confidence Highest Since 2015

BONDS

NZGBs closed off the best levels, flat to 7bps richer, with the 5-year outperforming.

  • The move away from the session’s best levels was likely assisted by ANZ’s business survey, which came in stronger again in November. Confidence rose to 30.8, the highest since early 2015. The measure rose sharply in October helped by post-election optimism and a more pro-business government but so far this tendency is not proving temporary. Yesterday the RBNZ spoke about demand slowing less than expected and this data suggests that it could be picking up again.
  • Today’s weekly bond auctions also did little to support the local market with the three cover ratios lower than previous offerings at 1.94x to 3.75x.
  • Slightly cheaper cash US tsys in the Asia-Pac session has also likely weighed on the local market.
  • Swap rates closed 2-7bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing closed little changed after yesterday’s hawkish hold from the RBNZ. OIS pricing is still 1-7bps firmer than pre-RBNZ decision levels.
  • Tomorrow, the local calendar sees CoreLogic House Prices and ANZ Consumer Confidence.

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.