Bonds
US rates market moved sharply higher in reaction to their strong GDP; eyes on NFPs
31st Jul 14, 8:10am
by
By Raiko Shareef
NZ swaps continued to take their cues from the rally offshore, with rates pushing lower and flatter.
The 2-year swap yield shed 2 bps to 4.06%, as receiving interest continues to weigh on the short end of the curve.
The US rates market moved sharply in reaction to the strong GDP print.
The 10-year bond yield rose by 9 bps to 2.55%.
It lost a little ground following the mixed-bag of an FOMC Statement, but recovered that later in the session.
Today, the local market will be watching building approvals data across the ditch, before settling into the ranges ahead of the US employment and inflation reports tomorrow night.
Other news:
* German CPI printed at +0.8% as expected.
* European consumer confidence remained at -8.4.
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