Lower global rates weigh on NZ swaps. German rates slip. US data strong and Fed leadership speculation rises

By Jason Wong

US 10-year Treasury yields fell a couple of ticks during the NZ trading session as speculation about the next Fed Chair overhung the market, and fell further as German yields slipped, but yields have since increased and have been supported by the stronger ISM non-manufacturing release.

From a low of 2.30%, the 10-year rate now sits at 2.33%, up 1 bp or so from the NZ close.

The NZ rates market remained quiet, with government rates barely moving, the 2-year swap rate unchanged at 2.21% and the 10-year swap rate down 2 bps at 3.27%, a reflection of lower global rates.

The day ahead looks pretty uneventful, with flows light and likely in a holding pattern until Friday night’s US employment report.

Daily swap rates

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Source: Westpac

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Source: Westpac


Jason Wong is on the BNZ Research team. All its research is available here.