FxWirePro: Daily Commodity Tracker - 21st March, 2022 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Lee Seung-heon Signals Caution on Rate Hikes, Supports Higher Property Taxes to Cool Korea’s Housing Market 
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Australian Pension Funds Boost Currency Hedging as Aussie Dollar Strengthens 
The New Zealand bonds ended on the upside Monday as investors remain sidelined in any major trading activity due to lack of any economically significant data and tracking some strength in the U.S. Treasuries. Also, markets will be focussing on the country’s trade balance data for the month of June, scheduled for release on July 25 for further direction in the bond market.
At the time of closing, the yield on the benchmark 10-year bond, which moves inversely to its price, fell 1/2 basis point to 2.94 percent, the yield on 7-year note also slipped 1/2 basis point to 2.81 percent while the yield on short-term 2-year note ended 1 basis point lower at 1.95 percent.
Continued soft CPI figures question the path for inflation going forward. While strong inflation suppressants remain, better growth momentum and a lift in wage growth should eventually flow into more price tension and core inflation lifting in a slow manner. But the RBNZ will feel fully vindicated in its ultra-cautious stance; so a hat-tip to them.
The risks that the OCR stays low for longer are growing. In data this week, the trade balance should recover in seasonally adjusted terms, while new mortgage lending will likely weaken further. Building consent issuance is likely to continue to struggle to push much higher.
Long end NZGS have underperformed during the recent UST rally and that is a trend that is likely to continue near-term if the FOMC is dovish. But equally, such an outcome would also likely be associated with an elongated period of NZD strength, which should keep a lid on the NZ/US spread.
Meanwhile, the New Zealand’s benchmark S&P/NZX 50 Index closed 0.15 percent higher at 7,682.29 while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 124.23 (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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