sign up log in
Want to go ad-free? Find out how, here.

Repayment of major April 15 NZGB raising demand, lowering yields. Bad China trade data also weighs on yields. Local eyes on QSBO

Bonds
Repayment of major April 15 NZGB raising demand, lowering yields. Bad China trade data also weighs on yields. Local eyes on QSBO

By Kymberly Martin

NZ swaps closed down 2-3 bps across the curve yesterday.

Overnight, US 10-year yields traded up toward 1.98% before returning to trade at 1.94%.

With a lack of prominent domestic events yesterday, NZ swaps followed the lead of their AU counterparts.

AU swaps dipped after the disappointing China trade figures. AU 10-year swap declined on the result, from 2.72% to below 2.69%. NZ equivalents followed, closing down 3 bps, at 3.70%. After the close of the NZ market, AU 10-year has traded back up to 2.72%.

NZGB yields closed down 4-5 bps at the longer-end of the curve.

Demand is likely being assisted by the imminent maturity of the 15 April bond which will result in the duration of the NZGB index extending.

Last evening US 10-year yields traded higher along with the global oil price. Contributing to the latter gain appears to be scepticism whether US lawmakers will accept a nuclear deal with Iran, which would then allow Iran to increase crude exports.

However, both oil and UST yields have come off their intra-night highs. US 10-year yields now trade just below 1.94%.

Today’s domestic focus will be the Q1 Survey of Business Opinion. For rates markets the survey’s inflation indicators will be more important than the top-line measure of business confidence.

Tonight, the market will be looking to see if US March retail sales can rebound from their disappointing February slump.

Daily swap rates

Select chart tabs

Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA

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.