Free Trial

NZGBS: Richer & At Best Levels, 10Y Outperformed $-Bloc, Q4 CPI On Wednesday

BONDS

NZGBs closed 5-6bps richer and close to the session’s best levels. Without data to provide a domestic catalyst, the local market has traded in line with US tsys during today’s Asia-Pac Session. Cash US tsys are currently flat to 2bps richer, with a flattening bias.

  • The NZGB 10-year has slightly outperformed the $-bloc today, with the NZ-US and NZ-AU yield differentials both 1bp tighter.
  • The release of the Performance Services Index is due tomorrow, ahead of Q4 CPI data on Wednesday. Market consensus is expecting an increase of 0.5% q/q from 1.8%. That would see annual inflation dropping to 4.7%, down from 5.6% in the year to September.
  • Swap rates closed 1-5bps lower, with implied swap spreads 3-5bps wider.
  • RBNZ dated OIS pricing closed little changed. A cumulative 88bps of easing is priced by year-end.
  • Trade Minister Todd McClay to meet key leaders in the World Trade Organization, including the director general. McClay will depart New Zealand on January 23.

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.