New Zealand bonds close lower tracking U.S. Treasuries amid ongoing trade conflicts

The New Zealand bonds closed on the downside during late morning session Wednesday tracking a similar movement in the United States after the latter witnessed a record number of job openings in July amid ongoing trade conflicts between the U.S. and China.

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 2.615 percent, the yield on the long-term 20-year note surged close to 2-1/2 basis points to 2.950 percent and the yield on short-term 1-year closed 1/2 basis point higher at 1.735 percent.

The U.S. JOLTS job openings surged 117k to a record high of 6.9 million in July, as the jobs opening rate stabilised at 4.4 percent and the quit rate rose to a 17-year high of 2.4 percent, which continued to point to a tight labour market, Reuters reported.

On the trade front, China is planning to ask WTO to impose US$7b sanctions on the US over its non-compliance in an earlier dumping duties dispute, whereas US president Trump indicated that trade talks with Canada are “coming along very well” as the latter is ready to offer its dairy market as a concession, OCBC Treasury Research reported.

Separately, the EU and UK are preparing for a special summit in November to sign a Brexit deal, and there is likely to be a second Trump-Kim summit, possibly in October, the report added.

Meanwhile, the NZX 50 index closed 0.33 percent lower at 9,195.57, while at 07:00GMT, the FxWirePro's Hourly NZD Strength Index remained slightly bearish at -75.65 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex