By Kymberley Martin
NZ yields closed down 1-2bps yesterday.
As the US market returned after Memorial Day, US 10-year yields traded tight ranges above 2.52%.
In the absence of local data releases yesterday, NZ swaps closed down slightly, with 2-year at 3.93% and 10-year at 4.74%.
The yield on NZGB23s has once again slipped just below 4.30%. NZ-US23s spreads sit about mid-range at 194bps. Similarly, NZ-AU spreads sit at 64bps.
As Northern hemisphere markets returned from their Monday holidays, they absorbed a host of 2nd tier US data releases. However, none were sufficiently notable to nudge US 10-year yields out of a fairly tight 2.52%-2.55% range.
Meanwhile German equivalents continued on a fairly steady downward path, to trade at 1.39%. Peripheral European spreads to German bunds failed to extend their post European-election-inspired compression.
Today will bring the domestic data highlight of the week, in the form of the ANZ business confidence survey.
Of particular interest will be the pricing intentions components of the survey. The RBNZ will be watching these closely as leading indicators of inflation. There are no scheduled US data releases tonight, aside from MBA mortgage applications.
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