The New Zealand bonds closed lower at the start of the trading week Monday tracking a peer movement in the United States’ Treasuries amid an otherwise muted trading session that witnessed data of little economic significance.
At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, jumped nearly 4 basis points to 2.670 percent, the yield on the long-term 20-year note climbed 2-1/2 basis points to 2.960 percent and the yield on short-term 2-year closed 1-1/2 basis points higher at 1.810 percent.
The 10-year UST bond yield surged further to 3.25 percent before closing at 3.23 percet (highest close since May 2011), which steepened the yield curve further, whilst Wall Street and the USD slipped on Friday. US’ September nonfarm payrolls rose a disappointing 134k (forecast: 185k), but the previous two months data saw a significant upward revision of 87k, and the unemployment rate unexpectedly fell more than expected to 3.7 percent (lowest since 1969) despite distortions from Hurricane Florence, OCBC Bank reported in its Daily Treasury Outlook.
Average hourly earnings also rose 0.3 percent m/m as expected in September, with the August data also revised down from 0.4 percent to 0.3 percent m/m, and the y/y prints easing back from 2.9 percent to 2.8 percent, the report added.
Meanwhile, the NZX 50 index closed 0.74 percent lower at 9,147.10, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at -45.90 (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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