By Raiko Shareef
Following Monday night’s move higher in offshore yields, the NZ swap curve opened 1.5bps higher.
The 2-year swap quickly moved up to trade at 4.06%.
Through the day, however, some nervousness around the upcoming CPI data and dairy price auction saw these moves pared back.
NZ interest rates closed 1bp higher for the day, with the 2-year swap at 4.04%.
Overnight, global bond yields fell with risk aversion the dominant theme. US 10-year Treasury yields dropped by 2bps to 2.62%.
European government bonds fell further, with the UK and German 10-year yields down 4bps and 5bps respectively.
Other news:
*Fed Chair Yellen delivered remarks on financial stability to a conference via video. She did not discuss monetary policy or the economy.
*Germany’s ZEW survey was mixed, with a jump higher in the ‘current situation’ component, but some deterioration in ‘expectations’.
*UK CPI inflation decelerated to 1.6% y/y in March, as expected.
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.