October 17, 2024 05:27 GMT
STIR: RBNZ Dated OIS Extends Yesterday’s Post-CPI Softening
STIR
RBNZ-dated OIS pricing closed 1-5bps softer across meetings today, with pricing for 2025 meetings 5-9bps softer compared to pre-Q3 CPI levels.
- The market is currently pricing in 57bps of easing for the November meeting, with a cumulative 101bps expected by February and 161bps by July.
- Despite New Zealand’s official rate being 43bps higher than Australia's cash rate, it's projected to be 67bps lower by July.
- Following today's stronger-than-expected Australian employment data, RBA-dated OIS pricing for 2025 meetings has firmed by 7-10bps.
Figure 1: RBNZ Dated OIS: Today Versus Yesterday’s Pre-CPI Levels (%)
Source: MNI – Market News / Bloomberg
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