New Zealand government bonds closed higher as investors wait to watch the Reserve Bank of New Zealand (RBNZ) Assistant Governor McDermott’s speech, scheduled to be held today at 23:00GMT. Also, a private survey of business PMI, due on April 12 by 22:30GMT shall add further direction to the debt market.
The yield on New Zealand’s benchmark 10-year Treasury note, which moves inversely to its price, fell 1-1/2 basis points to 2.81 percent, the yield on the long-term 20-year note slumped 2-1/2 basis points to 3.40 percent and the yield on short-term 2-year closed 2 basis points lower at 1.92 percent.
Further, the country’s ANZ Truckometer Heavy Traffic Index fell 0.3 percent m/m in March, to be down 0.7 percent for the quarter (charts are 3-month average). This isn’t a strong signal for GDP growth, but the index has been volatile lately.
On the other hand, the Light Traffic Index bounced 2.2 percent m/m, after a few months of fairly lackluster performance. This index is giving a softer signal for growth from mid-year, but the bounce-back is encouraging.
Meanwhile, the NZX 50 index closed 0.19 percent lower at 8,453.72, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 67.38 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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