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Markets starting to accept the US Fed will be raising rates, ahead of Fed minutes release. Local rates follow. Local migration data unlikely to move markets

Bonds
Markets starting to accept the US Fed will be raising rates, ahead of Fed minutes release. Local rates follow. Local migration data unlikely to move markets

By Doug Steel

Long end bond yields generally eased a few bps across Europe overnight. ECBB-inspired low European yields continue to hold back the longer end of the US Treasury curve.

US 10-year Treasury yields are essentially unchanged at around 2.36%.

Meanwhile, short end rates continue to push higher as the market firms up its expectations for Fed hikes. US 2-year Treasury yields rose around 2 bps, seeing further US curve flattening.

Local yields initially pushed higher yesterday with bond yields closing 0.5 to 2.0bps higher across the curve, while swap yields close flat.

Looking to the day ahead, a Yellen (who confirmed yesterday that she will leave the Fed when her successor is sworn in) speech today and the FOMC Minutes are most notable.

Today’s NZ migration data are unlikely to cause any movement.

Daily swap rates

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Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
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Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA


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

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