By Raiko Shareef
The NZ interest rate curve steepened yesterday, with swap yields up flat to 7 bps.
The short end of the curve was held down by the poor dairy auction result early on Wednesday morning, which bolsters the case for the RBNZ to remain on hold until 2015.
The 2-year swap yield closed unchanged at 4.08%.
On the other hand, the long end rose in line with the sell-off in US Treasury yields the night before, with the 10-year swap yield up 7 bps.
Overnight, US bonds looked set to repeat the previous night’s performance, before giving up its gains to fall 2 bps for the day to 2.41%.
German bond yields rose by 2 bps, likely benefitting from the reports of a Ukraine ceasefire being discussed.
Other news:
* Final readings of EZ services PMI 53.1 vs 53.5 exp.
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