GOLD: Gold Erases Some of Overnight Losses.   

NZGBs closed showing a dramatic bear-steepener, with benchmark yields 6-17bps higher. Nevertheless, yields closed well off session highs, particularly at the short end, This move aligned with richening in today's Asia-Pac session. NZGBs 16-20bps cheapening earlier in the session.  

• On a relative basis, NZGBs underperformed their $-bloc counterparts, with the NZ-US and NZ-AU 10-year yield differentials 3bps and 7bps wider.
• Swap rates closed finished 4-11bps higher, with the 2s01 s curve steeper.
• Tomorrow, the local calendar will see the RBNZ Policy Decision, with consensus unanimous in expecting a 25bp cut to 3.50%.
• RBNZ dated OIS pricing closed 1-5bps firmer across meetings, with Feb-26 leading. 27bps of easing is priced for tomorrow, with a cumulative 98bps by November 2025.
• Christian Hawkesby will be the head of RBNZ for an initial six-month period while a permanent governor is sought. The Reserve Bank board has started the recruitment process to find a permanent governor who will serve for five years, with Hawkesby and Assistant Governor Karen Silk considered likely candidates. (per BBG)
• 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.

• RES 4: 132.80 High Feb 5               
• RES 3: 132.56 High Feb 28 and a key resistance        
• RES 2: 132.03 High Apr 7 and the bull trigger 
• RES 1: 130.57 50.0% retracement of Monday’s high-low range                     
• PRICE: 130.03 @ 05:30 BST Apr 8
• SUP 1: 129.83 50-day EMA        
• SUP 2: 129.15/128.47 20-day EMA / Low Mar 28            
• SUP 3: 127.74 Low Mar 25 and a key short-term support 
• SUP 4: 127.20 Low Mar 17   

Bund futures trading in a volatile manner Monday. For now, a bull cycle remains in play and a pullback is considered corrective. A fresh short-term cycle high yesterday signals scope for a continuation of the uptrend. The contract has cleared 131.14, 76.4% of the Feb 28 - Mar 11 bear leg. This strengthens the bullish condition and opens 132.56, the Feb 28 high. Initial firm support to watch lies at 129.15, the 20-day EMA.

• After three days of significant rally, China's bond futures are lower today.  
• China's 10Yr bond future is lower by -0.27 at 108.913, having risen +0.605 yesterday.
• The recent rally has seen the 10YR break above all major moving averages, the nearest being the 50-day EMA of 108.13.
• China's 2YR bond future is lower by -0.05 at 102.60, touching the 100-day EMA of 102.6073 with the next key technical level the 200-day EMA of 102.58.
• Cash bonds are off too with the CGB 10YR at 1.66%, +2.5bps higher today.