By Raiko Shareef
NZ swap yields pushed lower yesterday, in sympathy with the sharp rally in offshore bonds on Friday night.
Local rates fell by 2 bps – 3 bps, with the 2-year swap closing 2 bps lower at 3.54%.
Offshore interest to receive NZ rates continues to be apparent, and is unlikely to relent materially ahead of RBNZ Governor Wheeler’s speech tomorrow.
Overnight, US Treasury yields rose, despite softness in the closely-watched ISM manufacturing survey. That slipped from 55.1 to 53.5, its lowest level in 12 months, and against expectations of a bounce.
A stronger USD and weaker global demand may have been contributing factors.
US 10-year Treasuries edged 3 bps higher nevertheless.
We note that this is one of a series of US data that has disappointed over the past month or so. The US data surprise index has slipped into negative territory in January, for the first time since August.
Today, the RBA policy decision will be the main event.
We also look out for possible headlines from RBNZ Deputy Governor Spencer’s non-public speech this morning.
Tonight, US factory orders will be the highlight.
Daily swap rates
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2 Comments
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