NZ bonds close lower as China’s manufacturing PMI expanded at its fastest pace in two years

The New Zealand government bonds closed modestly lower Thursday after showed that the Chinese official manufacturing PMI expanded at its fastest pace in two years.

The yield on the benchmark 10-year bond rose 2-1/2 basis points to 2.265 percent and the yield on 7-year note ended 2-1/2 basis points higher at 1.970 percent and the yield on short-term 2-year note also bounced 3 basis points to 1.840 percent.

Chinese official manufacturing PMI rose to 50.4 in August, higher than the consensus of 49.8, as compared to previous 49.9 in July. It is worth noting that any print above the 50-level indicates growth, while one below it represents a slowdown.

Moreover, investors await the Friday's US jobs data as it could be used to anticipate the Fed's most likely step to raise interest rate.

Meanwhile, the New Zealand’s benchmark S&P/NZX50 Index closed up 24.36 points to 7,423.19.