Long swaps drift lower

Overnight Ukraine jetliner crash sees UST 10yr yields fall sharply, now near 2014 lows

Bonds

Overnight Ukraine jetliner crash sees UST 10yr yields fall sharply, now near 2014 lows

18th Jul 14, 8:20am by bnzeconomists

By Raiko Shareef

A much quieter day for NZ interest rates yesterday, after the flurry of activity on Wednesday.

The short end of the curve was effectively unchanged, while the longer-end drifted lower in yield by 2 bps.

The 2-year swap closed at 4.14%

Offshore, US bond yields were of a mind to drift lower, even before headlines broke of a Malaysian Airline jet shot down over Ukraine

That news saw the US 10-year bond rate shunted below 2.50% in quick order.

The 10-year is currently 7 bps lower for the day at 2.45%, just 3 bps shy of its 2014 closing low of 2.44%.

Today, we suspect price action will be driven by developments around the jetliner crash, as blame is apportioned.

Daily swap rates

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Source: NZFMA

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4 Comments

by MortgageBelt | 20th Jul 14, 10:58am 1405810711

NZ, the National party & HSCB will no longer be able to keep pretending that NZ has a Rockstar economy that is entirely fire walled from terrorism, a global depression and major geopolitical troubles.

All western countries are running near zero interest rates with major economies still QE ing.

NZ and NZ banks Z is likely to be forced to reduce interest rates regardless of Auckland house prices. Unless NZ wants a major confidence collapse.

by cowboy | 20th Jul 14, 12:37pm 1405816656

What does Russia's war on Homosexuals got to do with the UST 10yr prices??

by MortgageBelt | 20th Jul 14, 1:41pm 1405820494

Russia is going to have a major effect on the global economy as it continues to supply weapons to various terrorist groups in the Middle East and Eastern Europe.

At the moment the current US president is disinterested in taking his geopolitical responsibities seriously, so we are seeing more trouble spot break out.

Our economy needs to be able to operate during war and global recessions without the conventional suppression of growth. We will not be totally insulated regardless of our distance.

by Gummy Bear Hero | 20th Jul 14, 2:21pm 1405822869

Dobby is ratty ever since he had to relinguish his role in the Harry Potter films , and go back to the humdrum existence of running Russia and the Ukraine into the ground ...

http://www.youtube.com/watch?v=96KitT_5zqM