bnzeconomists

International bond yields touch historic lows as inflation pressures evaporate resulting in a bond price boom

International bond yields touch historic lows as inflation pressures evaporate resulting in a bond price boom

Risk appetites fall further as oil plunge continues. Yen gains but euro and GBP both lose value overnight

Risk appetites fall further as oil plunge continues. Yen gains but euro and GBP both lose value overnight

It will be difficult for 2-year swap to fall much below current levels without the market beginning to price rate cuts

It will be difficult for 2-year swap to fall much below current levels without the market beginning to price rate cuts

After a push higher the NZD has retreated somewhat although it is still at elevated levels against the EUR and GBP and especially the AUD

After a push higher the NZD has retreated somewhat although it is still at elevated levels against the EUR and GBP and especially the AUD

NZ yields fall since end of 2014. US yields also slipped back after the rises induced by the unexpectedly strong US GDP data

NZ yields fall since end of 2014. US yields also slipped back after the rises induced by the unexpectedly strong US GDP data

Head-scratching over rise in the NZD after downward revisions to prior GDP growth rates; perhaps investors heartened by Yellen

Head-scratching over rise in the NZD after downward revisions to prior GDP growth rates; perhaps investors heartened by Yellen

Clear signals from the US Fed that policy rates will rise mid 2015 sees wholesale markets bid up benchmark rates. NZ swaps follow

Clear signals from the US Fed that policy rates will rise mid 2015 sees wholesale markets bid up benchmark rates. NZ swaps follow

USD investors pre-positioning for upbeat tone from Fed; market ignored NZ current account deficit growing; decent bounce in oil price improves market sentiment

USD investors pre-positioning for upbeat tone from Fed; market ignored NZ current account deficit growing; decent bounce in oil price improves market sentiment

Tightening and flattening of rate curves continues with long end falls continuing

Tightening and flattening of rate curves continues with long end falls continuing

Despite media pounce on lack of NZ surplus, financial markets hardly blinked; NZ looks good to nervous global investors

Despite media pounce on lack of NZ surplus, financial markets hardly blinked; NZ looks good to nervous global investors

Tight NZGB issuance confirmed, UST yields declined as Russian risks play out; eyes now on Fed signals

Tight NZGB issuance confirmed, UST yields declined as Russian risks play out; eyes now on Fed signals

Economic confidence taking a battering everywhere, except the US (and NZ), HYEFU may be ignored by currency markets

Economic confidence taking a battering everywhere, except the US (and NZ), HYEFU may be ignored by currency markets

NZGB to attract more scarcity premium although key risk remains currency exposure; swaps lower and flatter again

NZGB to attract more scarcity premium although key risk remains currency exposure; swaps lower and flatter again

NZD drifts lower following other commodity currencies, but will find direction this week from Q3 GDP result and US Fed decisions

NZD drifts lower following other commodity currencies, but will find direction this week from Q3 GDP result and US Fed decisions

NZ swap yields lower as US and German benchmark bond yields fall further. Short end in NZ stable, pressure lower at long end

NZ swap yields lower as US and German benchmark bond yields fall further. Short end in NZ stable, pressure lower at long end

Markets liked Wheeler's MPS but Wheeler didn't like the market bidding the NZD up, he sees it falling from here

Markets liked Wheeler's MPS but Wheeler didn't like the market bidding the NZD up, he sees it falling from here

Markets now expecting NZ OCR hikes to 4.25% by 2017 after restart in rises in late 2015; ECB TLTRO offer spurned

Markets now expecting NZ OCR hikes to 4.25% by 2017 after restart in rises in late 2015; ECB TLTRO offer spurned

NZD risks are to the downside; USD falls as does risk appetite; AU consumer sentiment low

NZD risks are to the downside; USD falls as does risk appetite; AU consumer sentiment low

NZ swaps pushed lower by international trends; Greek yields surge higher, with contagion to Italy. Eyes on AU unemployment report

NZ swaps pushed lower by international trends; Greek yields surge higher, with contagion to Italy. Eyes on AU unemployment report

Eyes on Fonterra; European and China moves all undermine risk, Yen strongest gainer on the day

Eyes on Fonterra; European and China moves all undermine risk, Yen strongest gainer on the day

Negative risk sentiment pushes benchmark bond rates lower. Aussie weakness may weigh on NZ

Negative risk sentiment pushes benchmark bond rates lower. Aussie weakness may weigh on NZ

Currency markets factoring in possible Fonterra payout scenarios; surprises will move the currency. ECB voter talks of eurozone's 'massive weakness'

Currency markets factoring in possible Fonterra payout scenarios; surprises will move the currency. ECB voter talks of eurozone's 'massive weakness'

NZ wholesale rates struggle to find direction ahead of Fonterra payout announcement; Aussies still eyeing rate cuts in 2015

NZ wholesale rates struggle to find direction ahead of Fonterra payout announcement; Aussies still eyeing rate cuts in 2015

Rising US yields, along with higher German and Australian yields, will see longer dated NZ equivalents higher today

Rising US yields, along with higher German and Australian yields, will see longer dated NZ equivalents higher today

Kiwi entering a sustained downtrend in 2015 which could start soon, led by RBNZ signals and lower Fonterra payout decisions

Kiwi entering a sustained downtrend in 2015 which could start soon, led by RBNZ signals and lower Fonterra payout decisions