NZGBS: Subdued Session Ahead Of US CPI Data

NZGBs have closed flat to 2bps richer across benchmarks following a relatively uneventful local session.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Total Spending and Net Migration data.
• Given the potential for significant developments in the upcoming days, local investors have opted to stay on the sidelines during today’s session in anticipation of the US inflation data scheduled for later today and the Federal Reserve's decision on Wednesday. This week also sees ECB and BOE policy meetings before the BOJ policy decision next Tuesday.
• The RBNZ’s annual re-weighting of TWI will come into effect on December 13, with the AUD weight rising to 17.7% from 16.5%. The Yuan weight falls to 22.6% from 25.6%, while the USD weight rises to 14.5% from 13.8%.
• Despite the subdued session, swap rates closed at their best levels, with rates 3-4bps lower.
• RBNZ dated OIS pricing is little changed across meetings, with terminal OCR expectations at 5.56%.
• Tomorrow, the local calendar sees REINZ House Sales (Nov), BoP Current Account Balance (Q3) and Food Prices (Nov).