By Kymberly Martin
Following Friday night’s US-GDP-inspired decline in yields, NZ swap and bond yields closed down 2-4bps yesterday.
2-year swap, at 2.83%, remains at the lower end of the familiar 2.80-2.90% range that has contained it for the past six weeks.
The 2-10s curve sits at 98bps, close to the level (95bps) that we would position for steepening.
NZ bond yields continue to languish near to all-time lows. The yield on 10-year bonds sits at 3.19%.
Spreads to US and AU equivalents remain close to bottom of ranges at 153bps and 8bps respectively.
Overnight, in the backdrop of more buoyant equity markets the US 10-year yields managed to stabilise around the 1.66% level.
Today, the ANZ business survey will be released. We expect it to again be upbeat, consistent with 3-4% GDP growth.
Credit aggregates data will also likely show borrowing continues to pick up.
No chart with that title exists.
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.