NZGBS: Twist-Steepening, 10Y Underperformance Vs. $-Bloc

NZGBs have twist-steepened into the close, with yields 1bp lower to 4bps higher. The 5 and 10-year benchmarks closed at session cheaps, despite the lack of newsflow locally.

• On a relative basis, the NZGB 10-year has also underperformed its $-bloc counterparts, with the NZ-US and NZ-AU 10-year yield differentials respectively 8bps and 9bps wider.
• Cash US tsys are dealing little changed in today's Asia-Pac session as participants digest yesterday’s release of the December FOMC Minutes. The market’s focus now turns to ADP private employment later today, followed by December employment data on Friday.
• Swap rates closed 3-4bps firmer, with short-end implied swap spreads wider.
• RBNZ dated OIS pricing closed flat for meetings out to July and 3-5bps firmer beyond. 106bps of easing is priced by November.
• Tomorrow, the local calendar is empty.