New Zealand bonds slump at close ahead of GlobalDairyTrade price auction

New Zealand government bonds slumped at the time of closing Monday as investors awaited the country’s GlobalDairyTrade (GDT) price auction in a muted trading week that is scheduled to witness data of least economic significance..

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, fell 1 basis point to 2.73 percent, the yield on the long-term 20-year note also dipped 1 basis point to 3.23 percent and the yield on short-term 2-year closed 1 basis point lower at 1.82 percent.

Global risk appetite remained resilient last week, with the Dow chalking up its 7th straight session and the 10-year UST bond yield holding at 2.97 percent, while crude oil prices retreated slightly. In yet another turnaround, US President Trump has told the Commerce Department to get ZTE back in business.

Further, North Korea has said it would dismantle its nuclear test site ahead of its talks with US president Trump in June. Over the weekend, the announcement of Malaysia’s DPM, 3 ministers for Finance, Home Affairs and Defence, as well as the Council of Elders may set the tone ahead of this morning’s re-opening of trading in the Malaysian financial markets.

Meanwhile, the NZX 50 index closed 0.42 percent higher at 8,713.23, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bearish at -151.67 (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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