NZGBs: Tick Lower Through Asia, RBNZ Due Next Week

NZGBs have ticked lower through today's Asian session, however ranges have been narrow and there has not yet been much follow through on the move lower. NZGBs sit 2-6bps cheaper across the major benchmarks, light bear steepening is apparent.

• Pressure has been seen alongside an uptick in the USD and lower regional equities are weighing on sentiment.
• 10-Year NZ US Swaps are stable and well within recent ranges, last printing at +55bps.
• With next week's RBNZ Meeting in view; OIS remain stable, pricing no change in the OCR next week with ~40bps of cuts by Oct 24.
• A reminder that the NZ Government Coalition will look to narrow the RBNZ's remit to focus on price stability (BBG). PM-Elect Luxon noted that his first economic job is to get inflation controlled.
• Looking ahead, the aforementioned RBNZ monetary policy decision headlines next week's docket. Also due next week are October Building Permits, November ANZ Business Survey and Consumer Confidence.