May 28, 2024 04:43 GMT
NZGBs Slightly Cheaper, Business Confidence Wednesday
BONDS
NZGBs closed slightly cheaper, with the curve flatter ranges were narrow and yields finish near session highs. There was little in the way of local headlines today, we the market focused on the NZ Budget and US GDP on Thursday.
- The NZGB curve is flatter, the 2Y +3.2bps at 4.909%, 10Y is +2.8bps at 4.800%. While the US-NZ 2Y swap 3bps lower at -24bps, off yearly highs -5.5bps made earlier this month.
- Swap rates are 1-4bps higher
- The RBNZ will implement Debt-to-Income (DTI) restrictions starting July 1, limiting high-DTI lending by banks. The restrictions apply to new residential property loans for both owner-occupiers and investors.
- Filled jobs rose 0.1% m/m in April, vs a revised 0.3% rise in March down from 0.4%. Filled jobs rose to 2.404m from a revised 2.402m
- RBNZ dated OIS pricing is little changed today. A cumulative 20bps of easing is priced by year-end.
- Looking Ahead: ANZ Business Confidence & Activity Outlook On Wednesday
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