MNI China Press Digest July 18: PBOC, Beijing, Arctic Shipping

MNI: PBOC Net Injects CNY47 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1285 Thurs; -1.29% Y/Y

CHINA PBOC CONDUCTS CNY49 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1285 THU VS 7.1318

MNI BRIEF: China Equip't Renewal Policy Includes Foreign Firms

Australia Jun Unemployment Rate 4.0%

Japan Jun Exports +5.4% Y/Y; Imports +3.2% Y/Y

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NZGBS: Sharp Post-RBNZ Rally, 59bps of Easing By Year-End

BONDS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

NZGBs closed 5-13bps richer across benchmarks after the RBNZ Policy Decision. The Committee reached a consensus to maintain the OCR at 5.50%, as unanimously expected.

  • The RBNZ anticipates that CPI will fall within the 1-3% target range in the second half of 2024 and observes signs that inflation persistence will ease, though some domestically generated price pressures remain strong.
  • However, they surprised the market with the final paragraph of the meeting summary: "The appropriate stance of monetary policy was discussed. The Committee agreed that monetary policy will need to remain restrictive. The extent of this restraint will be tempered over time consistent with the expected decline in inflation pressures.
  • RBNZ statement can be found here.
  • Swap rates closed 8-19bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing is 8-26bps softer across meetings, with early 2025 leading. There was a 4% probability priced in for a 25bp hike at today’s meeting. A cumulative 59bps of easing is priced by year-end versus 36bps before today’s decision.
  • Tomorrow, the local calendar will see Food Prices alongside the NZ Treasury's planned sale of NZ$225mn of the 3.0% Apr-29 bond, NZ$225mn of the NZ$225mn of the 4.25% May-34 bond and NZ$50mn of the 2.75% Apr-37 bond.
203 words

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.

NZGBs closed 5-13bps richer across benchmarks after the RBNZ Policy Decision. The Committee reached a consensus to maintain the OCR at 5.50%, as unanimously expected.

  • The RBNZ anticipates that CPI will fall within the 1-3% target range in the second half of 2024 and observes signs that inflation persistence will ease, though some domestically generated price pressures remain strong.
  • However, they surprised the market with the final paragraph of the meeting summary: "The appropriate stance of monetary policy was discussed. The Committee agreed that monetary policy will need to remain restrictive. The extent of this restraint will be tempered over time consistent with the expected decline in inflation pressures.
  • RBNZ statement can be found here.
  • Swap rates closed 8-19bps lower, with the 2s10s curve steeper.
  • RBNZ dated OIS pricing is 8-26bps softer across meetings, with early 2025 leading. There was a 4% probability priced in for a 25bp hike at today’s meeting. A cumulative 59bps of easing is priced by year-end versus 36bps before today’s decision.
  • Tomorrow, the local calendar will see Food Prices alongside the NZ Treasury's planned sale of NZ$225mn of the 3.0% Apr-29 bond, NZ$225mn of the NZ$225mn of the 4.25% May-34 bond and NZ$50mn of the 2.75% Apr-37 bond.