New Zealand bonds close lower ahead of GDT price auction

The New Zealand bonds slumped at the time of closing Tuesday investors remain focussed to watch the GlobalDairyTrade price auction scheduled to be held later today.

At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 5 basis points to 2.86 percent, the yield on 7-year note also climbed 4-1/2 basis points to 2.71 percent and the yield on short-term 2-year ended 3 basis points higher at 2.05 percent.

Prices at the last Global Dairy Trade (GDT) auction, the 3rd sale of the 2017-18 season, fell 1.6 percent, following a 0.2 percent increase at the previous sale. Prices overall have dipped below highs seen in December 2016 and prices which will cause some concerns that underlying momentum is fading with prices drifting from second-quarter levels.

New Zealand’s retail sales rose in the June quarter, benefitting from increased consumer spending during the World Masters Games and the Lions rugby tour. Sales volumes gained 2 percent in the three months ended June 30, 2017, following a 1.6 percent rise in the March quarter, Statistics New Zealand figures show. The value of retail sales rose 1.6 percent, compared to the record 2.5 percent increase in the March quarter.

Meanwhile, the NZX 50 index rose 0.67 percent at close to 7,813.74, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 44.64 (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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