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Articles by Bnzeconomists


Bond yields driven lower

Investors pile into longer dated NZ bonds causing flattening bias to yield curve

Investors have love affair with US$

NZ$/US$ below 0.8100 for first time this year as tidal wave of NZ$ selling overwhelms local buyers

Net $10 bln of bonds to be issued

Budget confirms bond issuance for next 12 months; DMO's desire is for inflation-indexed bonds to reach up to 20% of outstanding bonds

NZ economy in enviable position

NZ in pretty good shape compared to many peers where severe austerity programmes exist; NZ sovereign rating affirmed by agencies (S&P, AA, Fitch, AA, Moody’s, Aaa)

Contraction in Eurozone GDP

Sixth consecutive Eurozone GDP contraction amid signs European (and particularly German) economies continue to struggle

Foreigners own more NZ bonds

RBNZ data shows 69% of NZ Govt bonds are owned offshore, up from 68.3% previously

A$ on a slippery slope

Rating agencies confirm Australia's AAA status but A$ continues its slide against US$ following budget announcement

Heavy sell-off in Japanese bonds

The yield on Japanese 10-year bonds hits 0.80%; If BoJ's policies to stimulate inflation are successful yields are expected to rise higher

NZ$ slips further against Euro

Key support for the NZ$/EUR cross rate now at 0.6300; Future direction of this pair will be depend on Eurozone data and commentary due tonight

Selling pressure forcing NZ yields higher

NZ 10-year yields rise 18 bps last week and our bonds are following sell-offs in offshore markets

Rally in US$ based on fundamentals

US economy outperforming much of the developed world and market watchers contemplating Fed’s exit from QE policies

NZ long dated bonds remain expensive

NZ bonds continue to trek lower with 10-year bond yields sit within 10 bps of all-time lows

Currency markets explode into life

USD/JPY catapults through the 100 mark on weight of speculative buying

NZ$ fall an over-reaction

Governor Wheeler’s comments about “intervention” appear to have been overblown and misinterpreted according to BNZ

NZ-AU 2-year swap spread grows

AU short-end swaps closed down after RBA rate cut and leaves door open for further cuts

RBA Cash rate at all-time low

Consensus indicates RBA has left its powder dry to do more cuts; NZ$ hits 3½ year highs against A$

US 10-year yields keep rising

Fears of a Spring slowdown in US growth diminish, US long bonds look likely to extend their sell-off

A$ continues to weaken

Soft AU retail sales report the latest in string of weaker-than-expected data; A$ extends its fall against NZ$ and US$

US yields lurched higher on positive data

Stronger-than-expected US nonfarm payrolls pushes US 10-year bond yields up to 1.74%; Equivalent German bond yields also higher

Upbeat US non-farm payrolls data

US jobs report re-established faith in the US and global recoveries, bolstering risk appetite, commodity prices, and NZ$