NZGBS: Subdued Open Ahead of Busy Global Calendar

NZGBs open 4bp richer in the wake of the stronger lead from U.S. Tsys ahead of the weekend. After six straight weeks of losses, U.S. Tsys finished the week near session highs defying the higher-than-expected ISM Services survey and hawkish comments from ECB President Lagarde.

• The NZ Treasury announced the launch & planned 7 March pricing of the new 4.50% 15 May 2030 bond, sized at a minimum of NZ$3.0bn, capped at NZ$5.0bn. Initial price guidance is 2 to 5 basis points over the 20 April 2029 nominal bond.
• Swaps bull flatten with rates 3-4bp lower, leaving swap spreads flat.
• RBNZ-dated OIS is unchanged across meetings with April meeting pricing at 40bp of tightening and terminal OCR pricing at the RBNZ’s projected OCR peak of 5.50%.
• Domestic construction data revealed a Q/Q fall in Q4, alongside a mark higher for the rise seen in Q3. This data is set to be skewed by the natural disaster rebuild in the months/quarters ahead, which will bolster economic growth figures.
• The lack of meaningful domestic headline flow will leave the digestion of China's annual economic target setting front and centre during the early rounds of Monday dealing.
• Q4 manufacturing data headlines the lobal docket this week, with card spending and manufacturing PMI data also slated.
• There is plenty to eye on the global docket in the coming days, with the RBA meeting providing the highlight of the trans-Tasman slate. Further afield, Fed Chair Powell's semi-annual testimony to Congress, the NFP print and the latest BoJ & BoC decisions will draw attention.