By Raiko Shareef
NZ swap rates were flattened by the move lower in offshore rates the night before.
Local swap yields were 3 bps to 6 bps lower.
Unsurprisingly, NZ rates opening considerably lower, after the 5 bp fall in US 10-year bonds on Tuesday.
With the short end was supported by natural flow from the local mortgage books, the curve flattened.
The 2-year swap closed 3bps lower at 4.24% while the 10-year dropped 6bps to 4.94%.
Offshore, the US bond market was whipped around by the FOMC Minutes released early this morning. Initially, Treasuries pushed higher, with the 10-year rate nearly touching 2.60%.
But that was more than reversed, with investors perhaps positioned for a more hawkish set of Minutes. The 10-year is currently 5 bps lower for the day at 2.55%.
Today, the NZ rates market will be eyeing the employment report across the Tasman.
Later on, Fed speakers George and Fischer might give cues to offshore rates markets.
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