Jason Wong

Little market reaction to UK election, US Fed rate hike all priced in, NZ swap-bond spreads streched, so narrowing is due

Little market reaction to UK election, US Fed rate hike all priced in, NZ swap-bond spreads streched, so narrowing is due

NZD traded a 25 point range against the USD and ended at 0.7210; GBP weaker on surprise election result, NZD up 1.6% against the GBP; currencies, other than GBP, close within 0.2% versus the USD

NZD traded a 25 point range against the USD and ended at 0.7210; GBP weaker on surprise election result, NZD up 1.6% against the GBP; currencies, other than GBP, close within 0.2% versus the USD

Politics in Italy, the ECB stance, polling in the UK, and testimony in the US all push rates in various directions. There are no local influences on NZ rates

Politics in Italy, the ECB stance, polling in the UK, and testimony in the US all push rates in various directions. There are no local influences on NZ rates

NZD and USD stronger amidst modest market movements; ECB policy assessment sees risks to economic growth as "broadly balanced", up from "negative"; AUD stable around 0.7550 USD

NZD and USD stronger amidst modest market movements; ECB policy assessment sees risks to economic growth as "broadly balanced", up from "negative"; AUD stable around 0.7550 USD

NZ bond prices rise even as AU and US bond prices fall. Expect local yields to rise today

NZ bond prices rise even as AU and US bond prices fall. Expect local yields to rise today

NZD rangebound and saw some resistance just above the 0.7200 USD mark; CAD weaker on lower oil prices and AUD higher on economic data; EUR saw some volatility after ECB draft projections show CPI at around 1.5%

NZD rangebound and saw some resistance just above the 0.7200 USD mark; CAD weaker on lower oil prices and AUD higher on economic data; EUR saw some volatility after ECB draft projections show CPI at around 1.5%

NZD trading just above the 0.7200 USD mark; USDJPY down 1% as traders offload risk prior to key events on Thursday; AUD pushed through the 0.7500 USD mark but is 0.4% lower against the NZD

NZD trading just above the 0.7200 USD mark; USDJPY down 1% as traders offload risk prior to key events on Thursday; AUD pushed through the 0.7500 USD mark but is 0.4% lower against the NZD

Conditions are ripe for further downside pressure in short term interest rates as LIBOR-OIS spreads in the US contract

Conditions are ripe for further downside pressure in short term interest rates as LIBOR-OIS spreads in the US contract

With the UST 10yr at 2.18% and little change to Aussie bond futures, the chance of local rates making any big moves is limited

With the UST 10yr at 2.18% and little change to Aussie bond futures, the chance of local rates making any big moves is limited

USD weaker on weaker than expected employment data; AUD outperforms as data shows strong inventories and company profits; GBP was a solid performer prior to Thursday's election

USD weaker on weaker than expected employment data; AUD outperforms as data shows strong inventories and company profits; GBP was a solid performer prior to Thursday's election

UST 10yr rate traded in a 2.20-2.24% range and currently sits around 2.22%; 90% chance of June rate hike priced in by the market; local rates make fresh lows for longer term rates

UST 10yr rate traded in a 2.20-2.24% range and currently sits around 2.22%; 90% chance of June rate hike priced in by the market; local rates make fresh lows for longer term rates

NZD drops below the 0.7100 USD mark, now trading at 0.7065; USD supported by positive US economic news and Fed speakers affirming rate hike plan; AUD bottom of the leaderboard, down to 0.7380 USD, NZDAUD trading at 0.9570

NZD drops below the 0.7100 USD mark, now trading at 0.7065; USD supported by positive US economic news and Fed speakers affirming rate hike plan; AUD bottom of the leaderboard, down to 0.7380 USD, NZDAUD trading at 0.9570

UST rates continue to drift lower, 10yr rate down 1 bps to 2.20%; speculators are long the US 10yr futures and with rates close to their year-to-date low, the market is backing that Fed will back down from its policy guidance on rate hikes

UST rates continue to drift lower, 10yr rate down 1 bps to 2.20%; speculators are long the US 10yr futures and with rates close to their year-to-date low, the market is backing that Fed will back down from its policy guidance on rate hikes

Oil down 3% as traders lose conviction that production cuts will reduce inventory, CAD and AUD down about 0.4%; NZD trading at 0.71 USD mark, on track to be the best performing currency for the month

Oil down 3% as traders lose conviction that production cuts will reduce inventory, CAD and AUD down about 0.4%; NZD trading at 0.71 USD mark, on track to be the best performing currency for the month

CFTC data shows the largest net long positioning in US10s futures in nearly 10 years, but perhaps there is upside as softness already priced

CFTC data shows the largest net long positioning in US10s futures in nearly 10 years, but perhaps there is upside as softness already priced

USD on a modest downward trend since last evening, TWI down 0.2%; despite weak inflation data, the market is still pricing in an 84% chance of a Fed rate hike next month; German inflation slowed more than expected

USD on a modest downward trend since last evening, TWI down 0.2%; despite weak inflation data, the market is still pricing in an 84% chance of a Fed rate hike next month; German inflation slowed more than expected

NZD is hovering around 0.7060 USD after meeting some resistance near 0.7090 last night; local rates market saw modest upward pressure, reversing some of Friday’s move

NZD is hovering around 0.7060 USD after meeting some resistance near 0.7090 last night; local rates market saw modest upward pressure, reversing some of Friday’s move

NZD gained 0.5% on Friday to be trading at 0.7060 USD, up around 2% for the week; slump in GBP as polls show the Conservative party losing support and consumer confidence declining; WTI Crude Oil recovered 1.8% after a 4.8% plunge

NZD gained 0.5% on Friday to be trading at 0.7060 USD, up around 2% for the week; slump in GBP as polls show the Conservative party losing support and consumer confidence declining; WTI Crude Oil recovered 1.8% after a 4.8% plunge

Markets happy with current rate settings. Washington politics gets more volatile. Holiday weekend in some major economies

Markets happy with current rate settings. Washington politics gets more volatile. Holiday weekend in some major economies

NZGB bond markets will get new issuance to maintain a sustainable market, not because the Government needs the funding. NZGB 10yr yield near its 2017 low

NZGB bond markets will get new issuance to maintain a sustainable market, not because the Government needs the funding. NZGB 10yr yield near its 2017 low

Commodity currencies lower as oil drops almost 5% on smaller than expected production cuts; NZ budget has little impact on markets; USD recovers some ground, lost due to slightly dovish FOMC minutes released yesterday

Commodity currencies lower as oil drops almost 5% on smaller than expected production cuts; NZ budget has little impact on markets; USD recovers some ground, lost due to slightly dovish FOMC minutes released yesterday

NZD trended 1% higher overnight, meeting some resistance just under the 0.70 USD mark; USD remains out of favour; NZ 2 yr swap at 2.25%, 10 yr at 3.26%, steepening bias expected

NZD trended 1% higher overnight, meeting some resistance just under the 0.70 USD mark; USD remains out of favour; NZ 2 yr swap at 2.25%, 10 yr at 3.26%, steepening bias expected

UST and local rates traded in a tight range with little movement in the yield curve; USD was under pressure on Friday, USD majors index down 0.7%; NZD up to 0.6925 on USD weakness

UST and local rates traded in a tight range with little movement in the yield curve; USD was under pressure on Friday, USD majors index down 0.7%; NZD up to 0.6925 on USD weakness

Pricing for Fed hikes nudge up. Long end declines flatten yield curves. NZ 10yr at fresh low for year. US politics garner more attention than deserved

Pricing for Fed hikes nudge up. Long end declines flatten yield curves. NZ 10yr at fresh low for year. US politics garner more attention than deserved

USD recovered after being supported by strong data; NZDUSD below the 0.6900 level as USD strengthened and NZDAUD is also lower, now trading at the 0.9300 mark; Brazilian real down 6% on the President's corruption allegations

USD recovered after being supported by strong data; NZDUSD below the 0.6900 level as USD strengthened and NZDAUD is also lower, now trading at the 0.9300 mark; Brazilian real down 6% on the President's corruption allegations