New Zealand bonds remain firm at close ahead of RBNZ policy decision

The New Zealand bonds firmed at the time of closing Wednesday as investors are closely eyeing the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision, scheduled to be unveiled later today for detailed direction into the debt market.

At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.98 percent, the yield on 7-year note also slipped 1 basis point to 2.84 percent and the yield on short-term 2-year too ended 1 basis point lower at 2.12 percent.

"The RBNZ is highly unlikely to alter the stance of monetary policy next week, due to election uncertainty. Fortunately, the economic situation is such that the RBNZ can afford to sit on its hands. We expect no change in the OCR next week, and a repeat of previous monetary policy guidance," Westpac Research commented in its latest report.

Meanwhile, the NZX 50 index closed 0.34 percent higher at 7,913.78, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bearish at -148.62 (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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