New Zealand bonds jump at close after U.S. 30-year yield adds to largest weekly drop in 2 years; RBNZ’s Orr closely eyed

New Zealand bonds jumped at the time of closing Monday, tracking similar movement in the United States Treasuries, with the 30-year yield marking its largest weekly fall in two years last Friday. Also, investors remain focused to watch the Reserve Bank of New Zealand’s Governor Adrian Orr’s speech, scheduled to be held on May 30 for added insight into the country’s debt market.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, slumped 3 basis points to 2.74 percent, the yield on the long-term 20-year note also plunged 3 basis points to 3.26 percent and the yield on short-term 2-year also closed 1-1/2 basis points lower at 1.87 percent.

Treasury prices rose on Friday, pulling yields down, to mark the largest weekly decline in 2 years, as lingering concerns over the composition of the new Italian government helped stoke appetite for U.S. government paper and other haven assets.

Overall, Treasuries rallied for the week following a dovish set of minutes from the Federal Reserve that saw investors cut back their expectations for a more aggressive rate increase trajectory.

Meanwhile, the NZX 50 index closed 0.079 percent higher at 8,645.20, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 144.44 (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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