NZ swap rates slightly lower across the curve; Greek 10yr yields up 39bps; US 10yr yields unchanged after trading in a tight range

By Doug Steel

Yesterday, NZ swap yields moved mildly lower across the curve, essentially following offshore moves from the previous session. NZ 2-year swap yields closed down 3bps at 2.435%, while NZ 5-year swap yields declined a fraction more to close at just over 3.05%, and NZ 10-swap yields fell nearly 5 bps to close at 3.56%.

Overnight, US 10-year Treasury yields traded a tight 3bp range and currently sit broadly unchanged for the session at just under 2.49%. Meanwhile, the resurfacing of Greek bailout concerns saw some European yields push higher. 10-year government yields rose around 9 bps in Italy, 10bps in Portugal and all of 39bps in Greece.

Flat US yields should set at least the initial tone in NZ today as we await today’s AU business survey, before the important NZ labour market data tomorrow and the Fed on Thursday morning (NZT).

Doug Steel is a senior economist at BNZ Markets. All its research is available here.