NZGBS Slightly Cheaper, Curve Steepens

In local morning trade, NZGBs are slightly cheaper after US tsys curve bear-steepened on Friday. There is very little on the local calendar this week, while the US will be out tonight for Labor Day.

• The NZGB curve bear-steepened over the past week, yields on the 2yr were 11bps higher while the 3-7yr tenors before slightly better finished 7-9bps higher. This morning yields have continued to drifted higher with the 2yr +1.6bps at 4.092%, while the 10yr is +1.8bps at 4.269%.
• The 3y10y is +0.700 at 38.20, just off highs at 42.20 made mid August.
• Swap rates are 1bp low to 2.5bps higher, curve has steepened.
• Cross asset: The NZX50 is 0.25% lower, with Meridan Energy & Auckland Airport contributing the most to the losses, the NZD is little changed this morning.
• RBNZ dated OIS pricing has softened over the past few session with just 72bps of cuts now priced in for the year, while there is just under 7 cuts priced in through September next year.
• Calendar is empty today, focus will largely be on Australian data later this morning and APAC region S&P Global PMIs