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Pressured In Early Trade

BONDS

NZGBs are pressured in early dealing on Friday, opening dealing 1-4bps cheaper across the major benchmarks. Spillover from US Tsys which nudged lower on Friday after better than expected Jobless Claims and a well digested 5-Year TIPS auction has weighed. The US Tsy curve bear steepened,.

  • 10-Year NZ US Swaps sit well within recent ranges at +59bps.
  • RBNZ dated OIS remain stable, there are ~80bps of cuts priced by Nov 24.
  • Domestic newsflow has been light this morning and the local docket is empty on the last trading day before the Christmas break.

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