NZGBS: Subdued Start Ahead Of A Busy Week For Global Central Banks

In local morning trade, NZGBs are little changed as they brace for a potentially eventful week filled with central bank meetings, including the FOMC, BOJ, and BOE. Although no substantial changes in policy are anticipated at these meetings, their potential to influence the market still looms large. Notably, there is a level of uncertainty surrounding the possibility of the BOJ making further adjustments to its yield curve control.

• US tsys experienced a relatively subdued yet positive Friday session. The 2-year yield closed down 4bps at 5.0%, while the 10-year bond finished little changed at 4.83%.
• Conversely, global equities wrapped up the week on a cautious note, marked by concerns over geopolitical tensions and a somewhat lacklustre US corporate earnings season, which collectively dampened market sentiment. The S&P500 closed 0.5% lower.
• Quiet start to the week ahead in the US, focusing on Wednesday’s FOMC policy announcement and ADP private employment data, and Friday’s Non-Farm payrolls. However, the US Treasury's quarterly borrowing estimates are due today.
• Swap rates are unchanged.
• RBNZ dated OIS pricing is little changed across meetings, with terminal OCR expectations at 5.61%.
• Today, the local calendar is empty, ahead of Building Permits and ANZ Business Confidence tomorrow.