Free Trial
CHINA PRESS

China Should Act Early To Avoid Balance Sheet Recession

AUSSIE BONDS

Away From Best Levels

CNH

CNY Fixing - Slightly Firmer Bias

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NZGBs Steepening In Sympathy With Tsy Weakness On Thursday

BONDS

Thursday’s shift higher in U.S. Tsy yields has applied some pressure to NZGBs during the early rounds of Friday trade, with the major benchmarks running 2.0-7.5bp cheaper on the day, bear steepening.

  • Local ANZ consumer confidence data was flat on the month, operating comfortably below the breakeven 100 mark. The survey collator noted that “living costs are rising, house prices are falling, and mortgage rates are going up. However, the big win for households is the still super-tight labour market, which is contributing to strong job security and solid wage growth.”
  • Elsewhere, monthly building permits data saw a dip in M/M terms.
  • Looking ahead, next week’s RBNZ decision provides the key domestic risk event in the coming days, with ~55bp of tightening now priced into OIS. Note that all of the economists surveyed by both BBG and RTRS look for a 50bp step next week. Terminal rate pricing continues to hover around 4.85%.
  • Chinese official PMIs and Caixin manufacturing PMI data provide offshore points of interest ahead of the weekend.
170 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Thursday’s shift higher in U.S. Tsy yields has applied some pressure to NZGBs during the early rounds of Friday trade, with the major benchmarks running 2.0-7.5bp cheaper on the day, bear steepening.

  • Local ANZ consumer confidence data was flat on the month, operating comfortably below the breakeven 100 mark. The survey collator noted that “living costs are rising, house prices are falling, and mortgage rates are going up. However, the big win for households is the still super-tight labour market, which is contributing to strong job security and solid wage growth.”
  • Elsewhere, monthly building permits data saw a dip in M/M terms.
  • Looking ahead, next week’s RBNZ decision provides the key domestic risk event in the coming days, with ~55bp of tightening now priced into OIS. Note that all of the economists surveyed by both BBG and RTRS look for a 50bp step next week. Terminal rate pricing continues to hover around 4.85%.
  • Chinese official PMIs and Caixin manufacturing PMI data provide offshore points of interest ahead of the weekend.