NZGBS: Slightly Richer, Close At Cheaps, Heavy Local Calendar Next Week

NZGBs closed flat to 2bps richer after dealing in relatively narrow ranges for today’s local session. Nevertheless, NZGBs did close at or near session cheaps.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined ANZ consumer confidence data. To recap, ANZ believed the survey was “another mixed bag for the RBNZ - willingness to spend is low, as the RBNZ requires, but consumers’ inflation expectations are still inconsistent with the inflation target, and there hasn’t been much progress on that front in recent months.''
• Swap rates closed flat to 2bps lower, with the 2s10s curve steeper. The implied swap spread box steepened by 4bps.
• RBNZ dated OIS pricing closed flat to 2bps softer across meetings, with terminal OCR expectations at 5.61%.
• Looking ahead to next week, the local calendar presents a rather light schedule on Monday, with Building Permits and ANZ Business Confidence set for Tuesday. Wednesday is expected to bring significant releases, featuring CoreLogic House Prices, Employment, and Wages data, along with the publication of the RBNZ's Financial Stability Report.
• Next Thursday, the NZ Treasury plans to sell NZ$225mn of the 4.5% May-30 bond, NZ$175mn of the 4.25% May-34 bond and NZ$100mn of the 2.75% May-51 bond.