The risk off session instigated by Trump sees US Treasury rates down across the curve, with these dragging down European rates as well.
The 10-year rate is down 4 bps to 2.17%, with technicians eyeing up the year’s intraday low of 2.10% set in mid-June.
NZ’s swap curve barely changed (again) yesterday, with movements of 1 bps or less. Government rates nudged up, with the 10-year rate up 3 bps to 2.91%.
There was no change to the bond tender programme stemming from the government’s fiscal update. Confirmation of today’s tender of 2033 bonds reduces the chance of the DMO announcing the syndication of a new 2029 issue this week. The window of opportunity to do this deal ahead of the election is closing by the day.
If Trump stays quiet then trading over the next 24 hours should be uneventful, with more scope for volatility when the Yellen and Draghi speak at Jackson Hole on Fridaynight/Saturday morning.
Daily swap rates
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Jason Wong is on the BNZ Research team. All its research is available here.
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