Another relatively quiet session in global markets. NZ rates lifted slightly yesterday in sympathy with Australian peers after the RBA Minutes.
US rates are higher overnight, helped by solid trends from the housing market.
The local session was very muted. NZ rates seem inclined to drift higher, even before the RBA Minutes were released. The relatively upbeat tone struck in those saw short-end Australian yields push 3 bps higher. The NZ 2-year swap rate finished 2 bps higher, while the longer end lifted by 4 bps.
US bond yields pushed higher, though the sell-off began before the release of US housing data. Housing starts were much higher than expected, while permits were much lower, but both misses were driven by the volatile multi-family sector (read: apartments). In trend terms, both series still point to a strong US housing sector. US 10-year bond yields are up 4 bps to 2.07%.
The drop in dairy prices overnight might provide a mild depressive influence to local rates this morning. The data calendar for the day ahead is extremely light.
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Raiko Shareef is on the BNZ Research team. All its research is available here.
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