By Raiko Shareef
The weaker-than-expected NZ CPI reading saw NZ interest rally sharply on the release.
The 2-year swap fell 4 bps to 4.00%, and remained there into the close.
Interestingly, the mid- and longer-end of the curve fell slightly further, but we suspect there were flows related to bond issuance.
Overnight, US Treasury yields rose slightly on the back of positive US economic data, with the 10-year up 1 bp to 2.64%.
In the UK, the strong employment report helped the 10-year yield rise by 3 bps.
Other news:
* Bank of Canada held interest rates, but warned that the next move could be up or down, depending on whether a forecast pick-up in business investment materialises.
* Euro-zone core CPI inflation for March revised a notch downward to 0.7% y/y in final reading.
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