JGBS: Futures Downtick After FOMC,

In local morning trade, NZGBs are sharply cheaper, with yields 15-17bps higher, after US tsys finished weaker. Markets are starting to anticipate the easing impact of last week's sweeping tariff announcement. More countries are looking to negotiate or at least respond to the Trump administration's trade policy.

• The sharp risk-off tone in yesterday’s Asia-Pacific session buoyed US tsys.  The 10Y yield tapped a 3.8693% low as stocks gapped lower on the open before bouncing to 4.2122% during NY morning trade. Focus squarely on US tariffs and foreign countries' responses.
• NZ business confidence improved in the first quarter, with firms showing increased optimism about economic prospects, according to the NZIER QSBO. A net 23% of firms expect general economic conditions to improve in the coming months, compared with a net 9% in the previous quarter. This comes despite a net 21% of firms reporting a decline in their business activity during the March quarter.
• Swap rates are 12-16bps higher with the 2s10s steeper.
• RBNZ dated OIS pricing is 1-7bps firmer across meetings. 29bps of easing is priced for tomorrow’s meeting, with a cumulative 96bps by November 2025.
• On Thursday, the NZ Treasury plans to sell NZ$275mn of the 0.25% May-28 bond and NZ$225mn of the 4.25% May-34 bond.

2300GMT    0600HKT    0900AEDT South Korea BoP Current Account Feb
2350GMT    0650HKT    0950AEDT Japan BoP Current Account Feb
0030GMT    0730HKT    1030AEDT Australia Westpac Consumer Confidence Apr
0100GMT    0800HKT    1100AEDT Australia Sells $400m 2034
0130GMT    0830HKT    1130AEDT Australia NAB Business Confidence Mar
0335GMT    1035HKT    1335AEDT Japan 30yr Bond Sale
0500GMT    1200HKT    1500AEDT Japan Eco Watchers Survey Mar