By Raiko Shareef
The NZ swap curve steepened yesterday, as short-end interest rates fell while long-end yields largely held their ground.
Interest to pay fixed rates at the longer part of the curve kept yields supported, but the soft dairy auction on Wednesday morning saw pressure on the short-end.
Australia’s weak Q3 GDP report depressed short-end yields across the ditch, and NZ rates dipped lower in sympathy.
The 2-year swap yield closed 3 bps lower at 3.87%.
It was a rather quiet night in global rates markets, with the US 10-year bond yield drifting in a lazy 3 bp range. It currently sits unchanged for the day at 2.29%.
Today, Australian retail sales and trade balance data will be eyed for signs of softness in October.
Tonight, the ECB meeting will be the main event, with those looking for immediate further policy action likely to be disappointed.
* US ADP employment +208k vs +222k expected.
* US Markit Services PMI 56.2 vs 56.5 exp.
* US non-manufacturing ISM 59.3 vs 57.5 exp.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.