NZGBs Richer, Curve Flatter, RBA Ahead

NZGBs are 3-6bps richer and trading at the session's best levels, as we head into the close. It has been a relatively quiet session, overnight US tsys did very little. The local market is eagerly awaiting the RBA meeting coming up in just over 30 mins.

• US Tsys yields are little changed today, with futures seeing some block trade activity with a flattener and a couple of fly trades going through.
• Swap rates are 2bps higher in the front-end, with the long end unchanged to 1bps higher.
• RBNZ dated OIS pricing is 2-8bps higher today, A cumulative 45bps of easing is priced by year-end.
• NZGBs are 3-6bps lower today, with better buying in the belly of the curve with yields somewhat pivoting at the 7yr. The 2Y yield is -3.2bps at 4.711%, the 10Y -5.2bps at 4.701%
• Cross-asset NZD is little changed at 0.6013, Equities are down 0.30% while 5Y CDS is 1bp lower at 14bps
• Looking Ahead: NZ to Sell 7yr, 10yr 20yr bonds on Thursday and BusinessNZ Manufacturing PMI on Friday