New Zealand bonds sharply rebound tracking firmness in U.S. Treasuries; 10-year yields over 4-months low

The New Zealand bonds sharply rebounded at the time of closing Friday, tracking firmness in the U.S. Treasuries, after investors moved away from riskier assets, following the missile launch by the latter on the Syrian airbase. Further, the 10-year yields slumped to near 4-1/2 months low, following this.

The yield on the benchmark 10-year bond, which moves inversely to its price, slumped 4 basis points to 3.08 percent, the yield on 7-year note remained also plunged 3-1/2 basis points to 2.72 percent and the yield on short-term 2-year note also traded 4-1/2 basis points lower at 2.08 percent.

The United States President Donald Trump ordered a cruise missile strike against Syria Thursday, saying "no child of God should ever suffer" the horror of the chemical weapons attack Syria launched on its own people, reports confirmed.

The strike followed an attack on a rebel-held city in northern Syria with apparent chemical weapons. Autopsies on three Syrians who died after being brought to Turkey for treatment suggest the banned nerve agent sarin was used in the attack, the Turkish Health Ministry said.

Meanwhile, the New Zealand’s benchmark S&P/NZX 50 Index closed 0.63 percent lower at 7,243.75, while at 05:00 GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 23.65 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex