By Raiko Shareef
NZ interest rates sit largely unchanged after yesterday’s session, which was fairly subdued.
After the close, Rentenbannk announced that it priced a further NZ$100mn on its 2024 line, which explains the mild downward pressure on swap yields.
The 2-year swap closed unchanged at 4.07%.
The US bond market came back from the long weekend on a tear, with the 10-year Treasury yield surging 8 bps for the session to 2.42%.
Some of that can be attributed to a strong performance from US data.
German bonds also lifted off lows, with some commentators pointing to doubts about how close the ECB is to launching a new asset-purchase program.
Given how far European yields have fallen in recent weeks (German 10-year down 28bps in August), a bit of a pull-back seems justified.
This dynamic helps to explain why EUR struggled to find fresh depths against the USD overnight, and unlike most of its peers, held its ground, sitting at 1.3130.
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