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Markets expect another wave of NZ mortgage fixing; offshore investors like the rising interest rate levels

Bonds
Markets expect another wave of NZ mortgage fixing; offshore investors like the rising interest rate levels

By Raiko Shareef

NZ interest rates opened 2bps higher on Thursday, with mortgage books suspected to be the main perpetrators ahead of the RBNZ this week.

The likely 25bp rate hike is expected to spark another wave of mortgage fixing.

That said, offshore investors continue to offset the upward pressure on yields as they look to receive fixed rates at these levels.

US Treasury yields surged higher late on Thursday, thanks the combination of better US data and a surprise accord on the Ukraine.

The 10-year yield leaped by 8bps to close a pre-holiday shortened session at 2.72%, and were little changed over Monday.

UK and European bond markets remained closed.

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