​NZGBS: Slightly Richer, Subdued Start To Week For Global Bonds

In local morning trade, NZGBs are 1bp richer after a subdued start to the week for global bond markets, with little news flow and moderate volumes. US tsys finished slightly stronger in the NY session, with yields flat to 2bps lower.

• The lone data point on the day was the Conference Board Leading Economic Index, which fell by less than expected in December, down -0.1% m/m (cons -0.3%) after -0.5%. It marked the first beat since August and is only the third beat for the past year.
• Regional Fed Mfg Data and a US Tsy 2Y note sale highlight today. However, the main focus for the week is the estimate of Q4 GDP released on Thursday, followed by Consumer Spending and PCE Deflators on Friday.
• Fed speakers are in blackout ahead of next week’s FOMC meeting.
• Swap rates are 1-3bps lower, with the 2s10s curve flatter.
• RBNZ dated OIS pricing is little changed across meetings. A cumulative 88bps of easing is priced by year-end.
• The RBNZ has begun consultation on activating debt-to-income restrictions and loosening loan-to-value ratios for residential lending. (See Bloomberg link)
• NZ’s Performance of Services Index fell to 48.8 in December from a revised 51.1 in November.