bnzeconomists

Dovish outburst from RBA Governor Stevens sends A$ close to full capitulation; RBA rate cut expected next week

Dovish outburst from RBA Governor Stevens sends A$ close to full capitulation; RBA rate cut expected next week

Another chunky tender of longer duration bonds from LGFA; auctioning $10m of 2015s and $185m of 2021s

Another chunky tender of longer duration bonds from LGFA; auctioning $10m of 2015s and $185m of 2021s

Steep decline in Nikkei kick-started ‘risk-off’ tone and sees NZ$ and A$ both weaker; Japan's share market down more than 8.5% since 19 July

Steep decline in Nikkei kick-started ‘risk-off’ tone and sees NZ$ and A$ both weaker; Japan's share market down more than 8.5% since 19 July

Expect bumpy ride for bonds with US Fed and European central bank rate decisions due; US Payroll and US Q2 GDP data may add to volatility

Expect bumpy ride for bonds with US Fed and European central bank rate decisions due; US Payroll and US Q2 GDP data may add to volatility

US FOMC meeting and US payrolls likely to determine sentiment toward the US$ and ‘riskier’ assets such as NZ$; BoE and ECB meet with rate announcements due

US FOMC meeting and US payrolls likely to determine sentiment toward the US$ and ‘riskier’ assets such as NZ$; BoE and ECB meet with rate announcements due

The market surprised by RBNZ's explicit statement that the “removal of monetary stimulus will likely be needed in the future”

The market surprised by RBNZ's explicit statement that the “removal of monetary stimulus will likely be needed in the future”

A combination of US$ weakness and a more assertive tone in the OCR announcement has NZ$ surging ahead

A combination of US$ weakness and a more assertive tone in the OCR announcement has NZ$ surging ahead

Market pricing in 50 bps of hikes over next 12-months with the first being in April 2014

Market pricing in 50 bps of hikes over next 12-months with the first being in April 2014

Notable volatility in trading when Chinese data was released but NZ$/A$ continued on steady upward path towards its highs in November 2008

Notable volatility in trading when Chinese data was released but NZ$/A$ continued on steady upward path towards its highs in November 2008

Speculators positive on US$ as upbeat US economic data and more optimistic sentiment pulled US bond yields and equities higher

Speculators positive on US$ as upbeat US economic data and more optimistic sentiment pulled US bond yields and equities higher

Bernanke’s testimony stresses any reduction in bond buying program is highly conditional on the strength of the US economy

Bernanke’s testimony stresses any reduction in bond buying program is highly conditional on the strength of the US economy

Fourth consecutive quarterly inflation reading below the RBNZ’s 1-3% target range

Fourth consecutive quarterly inflation reading below the RBNZ’s 1-3% target range

Investors sell down US$ positions ahead of Bernanke's Congressional Testimony while the latest Fonterra auction has prices up 4.9% bolstering NZ$ sentiment

Investors sell down US$ positions ahead of Bernanke's Congressional Testimony while the latest Fonterra auction has prices up 4.9% bolstering NZ$ sentiment

An RBNZ announcement on LVR restrictions could prompt markets to blur the lines between this mandate and CPI price stability prompting a pull back of expectations for OCR hikes

An RBNZ announcement on LVR restrictions could prompt markets to blur the lines between this mandate and CPI price stability prompting a pull back of expectations for OCR hikes

Reports suggest the RBNZ may introduce LVR restrictions earlier than expected and these could be more aggressive than first thought

Reports suggest the RBNZ may introduce LVR restrictions earlier than expected and these could be more aggressive than first thought

Markets to and fro over the expected timing of Fed QE ‘tapering’ and investors will seek clarity from Bernanke's testimony this week

Markets to and fro over the expected timing of Fed QE ‘tapering’ and investors will seek clarity from Bernanke's testimony this week

Italian's fall short of maximum target in latest auction following a reduction in appetite in the wake of the recent ratings downgrade

Italian's fall short of maximum target in latest auction following a reduction in appetite in the wake of the recent ratings downgrade

US$ index plunges after comments by Bernanke in Q&A session which market took as being a more dovish tone

US$ index plunges after comments by Bernanke in Q&A session which market took as being a more dovish tone

Italian borrowing costs rose after downgrade from rating agency S&P; Italy’s long-term credit rating now BBB with negative outlook

Italian borrowing costs rose after downgrade from rating agency S&P; Italy’s long-term credit rating now BBB with negative outlook

FOMC members want to see further labour market improvement before tapering back bond purchase program

FOMC members want to see further labour market improvement before tapering back bond purchase program

NZ fixed interest markets ignored solid Q2 QSBO survey and NZ retail card spending data preferring instead to take lead from offshore

NZ fixed interest markets ignored solid Q2 QSBO survey and NZ retail card spending data preferring instead to take lead from offshore

US equities extend winning streak as Alcoa, the traditional earnings bellweather stock beat analyst expectations; NZ$ strongest performer against peers

US equities extend winning streak as Alcoa, the traditional earnings bellweather stock beat analyst expectations; NZ$ strongest performer against peers

NZ 10-year government bonds yielding above 4.4% and should begin to appear attractive relative to Australian and US equivalents

NZ 10-year government bonds yielding above 4.4% and should begin to appear attractive relative to Australian and US equivalents

NZ’s superior fundamentals and RBNZ’s more hawkish stance continues to exert upward pressure on GBP and EUR

NZ’s superior fundamentals and RBNZ’s more hawkish stance continues to exert upward pressure on GBP and EUR

NZ yield curve expected to steepen after US Non-Farm payrolls came in above expectation and US 10-year yields shot to almost 2.75%

NZ yield curve expected to steepen after US Non-Farm payrolls came in above expectation and US 10-year yields shot to almost 2.75%