By Kymberly Martin
NZ swap and bond yields closed down 2-3 bps.
Overnight US 10-year yields slipped from 2.51% to 2.48%.
NZ yields followed Friday night’s offshore moves lower yesterday. But it was generally a fairly quiet day of trading, assisted by the AU Bank holiday.
NZ 2 and 5-year swap now sit at 4.07% and 4.46% respectively.
There are no domestic data releases scheduled today so the focus remains the release of the Household Labour Force Survey tomorrow. We expect the unemployment rate to fall to 5.9% from 6.0%, with the risks tilted toward a lower reading.
This could help short-end yields find a floor after their recent pullback.
Across the Tasman, today’s focus will be the RBA’s meeting. The Bank will not doubt repeat that “the most prudent course is likely to be a period of stability in interest rates”.
The market’s pricing of a 30% chance of an RBA cut in the year ahead is unlikely to be significantly impacted.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.