By Raiko Shareef
Fixed interest markets were as exciting as currency markets overnight, which is to say not at all.
NZ swap yields closed unchanged yesterday, after initially pushing higher to reflect Friday night’s moves in US Treasuries.
That initial response was rebuffed by solid interest to offer across the curve.
Some action at the 5-year point suggests a flurry of kauri-related activity.
Global bond yields edged higher overnight, modestly extending small bounces from 2014-lows.
US 10-year yields rose by 2bps to 2.54%.
European peripheral yields continued to sell off, with Italian 10-year yields up by 8bps and Portuguese equivalents up 11bps.
The rise in yield across Europe partially reflects some concern around political risk heading into EU elections, where anti-austerity and euro-sceptic parties are on the rise.
Investors fret that a shift in power toward those parties would derail important economic reform efforts.
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