The US Treasury curve continues to flatten, with the 2-year rate up 1 bp to 1.75% and the 10-year rate down 1 bp to 2.33%.
The Fed’s outgoing Dudley speaks this afternoon about the US economy “10 years after the crisis” while tonight the new Fed chair-in-waiting Powell faces a grilling in front of a Senate committee.
He is expected to be on his best behaviour and play with a straight bat, offering some continuity with current Fed monetary policy and being malleable to winding back some of the post GFC financial market reforms.
The NZ yield curve showed slightly higher rates yesterday. Low rates at the longer end of the curve have seen corporate paying interest perk up, seeing the 5 and 10-year swap rates up 2 bps to 2.63% and 3.13% respectively, while the 2-year rate was flat at 2.17%.
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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