Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Russia Stocks End Flat as Energy Shares Support MOEX Index 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
The New Zealand long-term bonds ended flat Monday as investors remained sidelined in any major trading activity amid lack of sufficient economic data through the day. However, the benchmark short-term 2-year bond yields plunged in the face of hovering political uncertainness within the NZ economy over the formation of the new coalition government after a long spell of inactivity post the elections on September 23, in which no clear outright majority was achieved by any political party.
At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained flat at 3.00 percent, the yield on the 20-year note rose 1/2 basis point to 3.55 percent while the yield on short-term 2-year slumped 4-1/2 basis points to 2.03 percent.
Details of the new government’s policy direction and priorities are emerging. Lifting ‘well-being’ is clearly a focus, and the government will be more ‘active’ in a number of areas to achieve that. Measurement of progress will be key if money is not to be simply poured down the sink.
The challenge will be getting buy-in from businesses (a sustained hit to business sentiment would have negative growth implications) as well as hitting fiscal targets; the Treasury’s growth numbers are too high and there appears to be little in the kitty for initiatives beyond education and health.
"Concern over changes in the way the RBNZ will be operating look overblown too. We still see growth holding around 2-1/2-3 percent on average," ANZ Research commented in its latest report.
Meanwhile, the NZX 50 index jumped 0.73 percent to 8,143.98 at the close, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at -65.01 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
