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NZGBS: Richer After A Solid Takedown Of Weekly Supply

BONDS

NZGBs are either at their peak or very close to it, with benchmark yields 4-6bp lower, despite an uptick in business sentiment.

  • While there was minimal movement in US Treasury yields during Asia-Pacific trading, the driving force behind the afternoon's surge seems to be the successful incorporation of the weekly supply.
  • The cover ratios for the various bond lines ranged from 2.00 to 3.00 times, with the longer-dated issues (May-31 and May-41) leading the way, albeit slightly trailing the previous performance. In post-auction trading, the bond lines are 1 to 2bp richer.

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