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OIS Tightening Pricing Knocked Lower On COVID Case

RBNZ

Reports surrounding a community case of COVID 19 in Auckland have resulted in the NZ OIS strip unwinding ~6bp of tightening when it comes to the pricing surrounding tomorrow's RBNZ decision, with 24bp of tightening now priced i.e. a 96% chance of a 25bp hike is priced. Looking a little further out, the OIS strip now prices in 59bp of tightening come the end of the RBNZ's November meeting vs. ~66bp ahead of the COVID case report. The 59bp of tightening currently priced by the end of the RBNZ's November meeting equates to a 36% chance of 75bp of cumulative rate hikes across the next 3 RBNZ meetings.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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