Jason Wong

NZD up 0.8% against the USD as the risk off mood sees the USD index 0.6% lower; UST yields down 6 bps and 11 bps for the 2 yr and 10 yr rates respectively; local yields were down across the curve yesterday and further downward pressure is expected today

NZD up 0.8% against the USD as the risk off mood sees the USD index 0.6% lower; UST yields down 6 bps and 11 bps for the 2 yr and 10 yr rates respectively; local yields were down across the curve yesterday and further downward pressure is expected today

Under-shooting US data weighs on greenback even as markets still expect Fed rate hike. RBNZ's 'purposeful easing' still being absorbed by traders

Under-shooting US data weighs on greenback even as markets still expect Fed rate hike. RBNZ's 'purposeful easing' still being absorbed by traders

While markets don't buy RBNZ projections, they do accept that rate changes won't happen til inflation well over 2%. NZD's fall only takes it back to last week's level

While markets don't buy RBNZ projections, they do accept that rate changes won't happen til inflation well over 2%. NZD's fall only takes it back to last week's level

NOK, NZD, CAD and AUD are all up between 0.3-0.7% of the USD as oil prices rebound 3.5%; Trump's surprise sacking of FBI director Comey has little impact on the market; EUR loses afterglow from French election result

NOK, NZD, CAD and AUD are all up between 0.3-0.7% of the USD as oil prices rebound 3.5%; Trump's surprise sacking of FBI director Comey has little impact on the market; EUR loses afterglow from French election result

Markets likely to discount the expected RBNZ dovish views, as global markets settle into a period with few surprises

Markets likely to discount the expected RBNZ dovish views, as global markets settle into a period with few surprises

USD continues to rise as Fed speakers state that economic outlook unchanged despite recent data; AUDUSD probed fresh lows since January, down 0.7%, and has found support at 0.7340; NZD now below 0.6900 USD and just under 0.9400 AUD

USD continues to rise as Fed speakers state that economic outlook unchanged despite recent data; AUDUSD probed fresh lows since January, down 0.7%, and has found support at 0.7340; NZD now below 0.6900 USD and just under 0.9400 AUD

Local rates rise in tandem with global yields, led by UK gilts. Markets pricing in official rate hikes in the US and NZ, although timelines are still long

Local rates rise in tandem with global yields, led by UK gilts. Markets pricing in official rate hikes in the US and NZ, although timelines are still long

Increased risk appetite has seen higher global bond yields, UST up 2-3 bps across the board, which, if sustained, should follow through to NZ rates; USD boosted by softer EUR; NZD has kept up with the USD, now trading at 0.6915

Increased risk appetite has seen higher global bond yields, UST up 2-3 bps across the board, which, if sustained, should follow through to NZ rates; USD boosted by softer EUR; NZD has kept up with the USD, now trading at 0.6915

NZD outperforms all majors to trade at 0.6920 USD and 0.9320 AUD; USD fell after release of employment report, UST yields largely unaffected; local short end rates look to RBNZ announcement for direction

NZD outperforms all majors to trade at 0.6920 USD and 0.9320 AUD; USD fell after release of employment report, UST yields largely unaffected; local short end rates look to RBNZ announcement for direction

NZ 2yr swap rate remained anchored at 2.31% and 10yr swap rate is up to 3.40%; UST rates also showed mild steepening, 10 yr at 2.35%, strong employment report tonight would provide an upside bias

NZ 2yr swap rate remained anchored at 2.31% and 10yr swap rate is up to 3.40%; UST rates also showed mild steepening, 10 yr at 2.35%, strong employment report tonight would provide an upside bias

NZD has suffered from a recent drop in commodity prices even though NZ commodity prices have held up, currently trading at 0.6855 USD; USD reversed gains from FOMC announcement as EUR strengthened

NZD has suffered from a recent drop in commodity prices even though NZ commodity prices have held up, currently trading at 0.6855 USD; USD reversed gains from FOMC announcement as EUR strengthened

AUD was the weakest performer of the day, down 1.4% to 0.7430 USD; spillover effects have seen NZDUSD drop back below the 0.6900 level and it is trading around the session lows of 0.6880; FOMC statement pushed USD slightly higher

AUD was the weakest performer of the day, down 1.4% to 0.7430 USD; spillover effects have seen NZDUSD drop back below the 0.6900 level and it is trading around the session lows of 0.6880; FOMC statement pushed USD slightly higher

Probability of June rate hike moved from 63% to 75% after the FOMC announcement, with 36 bps increase priced in for rest of the year; NZ 2yr swap rate was unchanged but the 10yr was down 2 bps, driven by global forces

Probability of June rate hike moved from 63% to 75% after the FOMC announcement, with 36 bps increase priced in for rest of the year; NZ 2yr swap rate was unchanged but the 10yr was down 2 bps, driven by global forces

NZD up 0.4% to 0.6935 USD and back above the 0.9200 AUD level; VIX index continues to hover around a historically low level of 10; China growth slows; WTI Crude Oil down 2% to below US$48/brl

NZD up 0.4% to 0.6935 USD and back above the 0.9200 AUD level; VIX index continues to hover around a historically low level of 10; China growth slows; WTI Crude Oil down 2% to below US$48/brl

UST yields move lower although local wholesale rates inch up. Eyes on NZ labour market readings; wage pressures expected

UST yields move lower although local wholesale rates inch up. Eyes on NZ labour market readings; wage pressures expected

NZD and AUD head the leaderboard as they rise to 0.6910 and 0.7530 USD, NZDAUD trades at 0.9175; US data releases were on the soft side, but this only temporarily affected the USD as it ended the day almost flat

NZD and AUD head the leaderboard as they rise to 0.6910 and 0.7530 USD, NZDAUD trades at 0.9175; US data releases were on the soft side, but this only temporarily affected the USD as it ended the day almost flat

UST yields move higher on Mnuchin comments spruiking ultra-long bonds. Markets jittery ahead of US Fed rate review

UST yields move higher on Mnuchin comments spruiking ultra-long bonds. Markets jittery ahead of US Fed rate review

NZD ended the week at 0.6866 USD, falling 2% in the month of April and about 6% over the last three months on a TWI basis; NZ rates were lower on Friday, 1-2 bps down across the curve; US GDP lower than expected, but market reaction was limited

NZD ended the week at 0.6866 USD, falling 2% in the month of April and about 6% over the last three months on a TWI basis; NZ rates were lower on Friday, 1-2 bps down across the curve; US GDP lower than expected, but market reaction was limited

Dovish ECB sees German bond yields slip. NZGB bond yields also slip on strong demand. Eyes on US Q1 GDP

Dovish ECB sees German bond yields slip. NZGB bond yields also slip on strong demand. Eyes on US Q1 GDP

NZDUSD briefly fell to around 0.6850, below December's low, and currently trades at the 0.6875 level; ECB to “keep rates at present or lower levels for extended period of time”; SEK worst performer as Swedish central bank to purchase government bonds

NZDUSD briefly fell to around 0.6850, below December's low, and currently trades at the 0.6875 level; ECB to “keep rates at present or lower levels for extended period of time”; SEK worst performer as Swedish central bank to purchase government bonds

Short rates range bound, but long rates rise steepening local curve. UST 10yr yields slip as markets sceptical of Trump tax plans

Short rates range bound, but long rates rise steepening local curve. UST 10yr yields slip as markets sceptical of Trump tax plans

NZDUSD trading lower at 0.6880, as USD strength continued to dominate markets; USD supported by Trump's tax cuts; AUDUSD also traded lower to 0.7470 and NZDAUD is at 0.9215

NZDUSD trading lower at 0.6880, as USD strength continued to dominate markets; USD supported by Trump's tax cuts; AUDUSD also traded lower to 0.7470 and NZDAUD is at 0.9215

Bond markets adjust after suspicion that price firming has been overdone. US Fed resolve and risk-on sentiment may underpin rises in local wholesale rates

Bond markets adjust after suspicion that price firming has been overdone. US Fed resolve and risk-on sentiment may underpin rises in local wholesale rates

Market friendly French election result has seen an increase in global risk appetite; NZD, however, has not benefited from this and is trading at 0.6950 USD and 0.9220 AUD; EUR remains in favour and JPY suffers

Market friendly French election result has seen an increase in global risk appetite; NZD, however, has not benefited from this and is trading at 0.6950 USD and 0.9220 AUD; EUR remains in favour and JPY suffers

US tax cuts take focus - but border tax may be abandoned. Implications for US deficits queried. US Fed says still on track for two more 2017 rate increases

US tax cuts take focus - but border tax may be abandoned. Implications for US deficits queried. US Fed says still on track for two more 2017 rate increases