By Kymberly Martin
NZ swaps closed up 2bps across the curve. Overnight, US 10-year yields pushed up from 1.90% to 2.00%.
NZ swaps sold off from the outset yesterday following offshore moves. However, the moves did not get too far. NZ 2-year swap closed at 3.55% and 10-year at 3.68%.
The 2-10s curve, now approaching 12bps looks attractive for those looking to extend hedging out the curve.
We continue to see this curve trading up to 50bps in H2 assisted by a further rise in US 10-year yields.
Overnight, US yields pushed higher in the early hours of this morning as the recent rebound in the oil price continued, assisted by heighted tensions in the middle-east.
US 10-year yields pushed up from intra-night lows around 1.90% to trade at 2.00% currently. Aussie bond futures also followed the sell-off.
Today’s local agenda is fairly empty so expect NZ yields to follow offshore moves, slightly higher with the curve steeper.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.