NZ Rates: Yields unlikely to push up too far - ANZ

Sandeep Kanihama FXStreet Contributor

Just like the RBNZ Governor, the short end continues to “watch, worry and wait” as direction from here (with around 11bps of cuts priced in by mid-2019) hinges heavily on the upcoming flow of data, suggests the research team at ANZ.

Key Quotes

“The picture is a little clouded by upcoming (backward-looking) Q2 GDP figures, and that may see the market drift a little higher as longs get a little impatient.”

“Carry investors will also need to be mindful of funding markets. BKBM has shown a tendency to drift higher post the bill futures close out and our Australian colleagues do believe strains over the Tasman will intensify into quarter-end, which has spilled over here previously (rightly or wrongly). However, we doubt yields will push up too far, especially ahead of the RBNZ’s September OCR Review.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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