MNI: China CFETS Yuan Index Down 0.14% In Week of Aug 16

MNI: PBOC Net Drains CNY22.4 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Lower At 7.1415 Mon; +1.99% Y/Y

CHINA PBOC CONDUCTS CNY52.1 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1415 MON VS 7.1464

MNI BRIEF: Goolsbee Suggests Preference For Gradual Fed Cuts

Japan Jun Machine Orders 2.1% M/M

MNI JAPAN JUNE CORE MACHINE ORDERS +2.1% M/M; MAY -3.2%

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 483; GAS RIGS 98

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NZGBS: Some Profit-Taking After Strong Post-RBNZ Rally, New May-36 Bond Priced Tomorrow

BONDS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

NZGBs closed on a weak note, with benchmark yields 4bps higher. NZ Treasury’s announcement of the launch of a new May 2036 nominal bond possibly weighed on the market. The issue will be priced tomorrow with NZ treasury expecting to issue at least NZ$3bn.

  • Today's price movement also likely reflects profit-taking after the strong post-RBNZ decision rally. Nevertheless, NZGBs remain 5-21bps richer, with the 2/10 curve 16bps steeper.
  • NZGBs have also underperformed their $-bloc counterparts, with the NZ-US 6bps wider at +29bps.
  • The AU-NZ 10-year yield differential is -4bps today, now standing at -24bps compared to the recent high of -5bps in late July.
  • The recent move lower in the 10-year yield differential coincided with a move lower in the AU-NZ 1Y3M spread leading up to the RBA’s August policy meeting. However, this move has reversed, with the AU-NZ 1Y3M spread now approaching cyclical highs. Interestingly, the increase in the 1Y3M spread has not been reflected in the AU-NZ 10-year yield differential.
  • Swap rates closed 3-5bps higher.
  • RBNZ dated OIS pricing closed 4-7bps firmer across meetings. A cumulative 73bps of easing is priced by year-end.
  • The local calendar will see REINZ House Sales and Trade Balance data tomorrow and Q2 Retail Sales Ex Inflation on Friday. Also, RBNZ Deputy Hawkesby will speak tomorrow.
210 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

NZGBs closed on a weak note, with benchmark yields 4bps higher. NZ Treasury’s announcement of the launch of a new May 2036 nominal bond possibly weighed on the market. The issue will be priced tomorrow with NZ treasury expecting to issue at least NZ$3bn.

  • Today's price movement also likely reflects profit-taking after the strong post-RBNZ decision rally. Nevertheless, NZGBs remain 5-21bps richer, with the 2/10 curve 16bps steeper.
  • NZGBs have also underperformed their $-bloc counterparts, with the NZ-US 6bps wider at +29bps.
  • The AU-NZ 10-year yield differential is -4bps today, now standing at -24bps compared to the recent high of -5bps in late July.
  • The recent move lower in the 10-year yield differential coincided with a move lower in the AU-NZ 1Y3M spread leading up to the RBA’s August policy meeting. However, this move has reversed, with the AU-NZ 1Y3M spread now approaching cyclical highs. Interestingly, the increase in the 1Y3M spread has not been reflected in the AU-NZ 10-year yield differential.
  • Swap rates closed 3-5bps higher.
  • RBNZ dated OIS pricing closed 4-7bps firmer across meetings. A cumulative 73bps of easing is priced by year-end.
  • The local calendar will see REINZ House Sales and Trade Balance data tomorrow and Q2 Retail Sales Ex Inflation on Friday. Also, RBNZ Deputy Hawkesby will speak tomorrow.