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Inflation

LGFA auction passable

Latest LGFA bond tender softer than previous events with a bid-to-cover ratio of just 2x

Soft demand for LGFA auction expected

LGFA auction likely to be weaker due to factors such as size of issuance, duration risk, swap spread compression and proximity to FOMC meeting

SME's reducing future interest rate risk

Hedging activity from SME's is likely to limit any downside moves in swap rates

Stellar PMI number sees rates higher

BNZ PMI reading the highest since June 2004 and nudged up short end yields; 2-year swap rates heading towards mid-February highs

More risk in investment grade bonds

Sea-change in market risk sentiment reflected in fast rise of CDS spreads: BNZ's latest 'Credit Monthly' report

BNZ expect yields to rise across the curve

RBNZ's official 90-day bank bill track still implies a first 25bps hike around Q3 next year

Wheeler caught between a rock and a hard place

RBNZ concerned about hiking the OCR for fear of stronger NZ$, but reluctant to cut as it would create an even bigger housing monster

Swap rates sit at upper-end of trading range

Market slowly coming around to fact the RBNZ will hike rates within the next 12-months

US progressing toward fiscal adjustment

S&P announces revised US sovereign credit outlook to stable from negative and retains AA+ ( long term) rating

Are bond markets shifting gear?

Craig Simpson assesses recent changes in bond markets and notes many funds here and offshore no longer offer automatic price gains; yields start to rise