Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

New Zealand bonds close lower on expectations of ease in global trade tensions ahead of GlobalDairyTrade price auctionnew z

The New Zealand bonds closed lower Tuesday as investors are expecting an ease in the global political and trade war fears ahead of the country’s GlobalDairyTrade (GDT) price auction and retail sales for the second quarter of this year, both scheduled to be released later today.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, jumped nearly 2 basis points to 2.618 percent, the yield on the long-term 20-year note also surged nearly 2 basis points to 2.938 percent and the yield on short-term 2-year also closed nearly 1-1/2 basis points higher at 1.733 percent.

Fed’s Bostic (voter) warned that "I will not vote for anything that will willingly invert the curve", albeit he noted that "there are many, many signals in the economy and we have to pay attention to all of them" and "an inversion does not guarantee anything". He also maintained his expectation for one more hike this year, OCBC Treasury Research reported in its Daily Outlook.

Further, US President Trump apparently complained at a fundraiser that "during this period of time I should be given some help by the Fed" as well as opined that "I think China’s manipulating their currency, absolutely. And I think the euro is being manipulated also" in a Reuters interview. The latter may douse recent marker hopes for a US-Sino trade resolution or cease-fire, the report added.

Meanwhile, the NZX 50 index closed 0.073 percent higher at 9,115.78, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 115.69 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.