NZGBS: Slightly Richer, Subdued NY Session Ahead Of US Payrolls Data

In local morning trade, NZGBs are 1-2bp richer after US tsys had a muted reaction to US data, ahead of Non-Farm Payrolls later today. US tsys finished 1-2bp richer across benchmarks.

• The core PCE deflator printed in line with expectations at +4.2% y/y but showed a slight acceleration from the +4.1% seen in June.
• Initial jobless claims fell 4k to 228k versus expectations of 235k and 230k prior.
• Fed Collins did not touch on monetary policy in a speech on wealth gaps.
• Fed Funds implied rates show cumulative hikes of +3bp for Sep and +11.5bp for Nov to a terminal 5.45%, followed by 51bp of cuts to Jun’24 and a cumulative 122bp of cuts to Dec’24.
• Swap rates are 1bp lower, with the long-end implied swap spread wider.
• RBNZ dated OIS pricing is little changed.
• NZ residential property listings were little changed in August from a year earlier, following 10 months of double-digit annual declines, according to the nation’s largest property listing website realestate.co.nz.
• ANZ Consumer Confidence rises 1.6% m/m to 85.2.
• In Australia, the calendar is scheduled to release Housing Finance data for July.