New Zealand bonds close lower in muted trading, track movement in U.S. Treasuries

The New Zealand bonds ended on the downside Thursday as investor remain sidelined in any major trading activity due to lack of any economically significant data and tracking some strength in the U.S. Treasuries.  

At the time of closing, the yield on the benchmark 10-year bond, which moves inversely to its price, jumped 2-1/2 basis points to 2.98 percent, the yield on 7-year note climbed 2 basis points to 2.85 percent while the yield on short-term 2-year note ended 1 basis point lower at 1.96 percent.

The NZD continues to be a reluctant participant in the current weaker USD thematic, which is making topside moves in NZD/USD a real struggle, but for now, the top side is the vulnerable side.

Prices at the latest Global Dairy Trade (GDT) auction, the 14th sale of calendar 2017, rose 0.2 percent, following a 0.4 percent decline at the previous sale with volatility sharply reduced over the past four auctions. There was further uncertainty surrounding Chinese participation at the latest auction and overall Chinese demand will continue to be an important market focus during the remainder of 2017.

Meanwhile, the New Zealand’s benchmark S&P/NZX 50 Index closed 0.78 percent lower at  7,672.44 while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at -12.22 (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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