US COMMUNICATIONS: Paramount Skydance: S&P Rating

The early Wednesday bias in NZGB yields is weaker, with yield losses in 1-2bps range at this stage. This puts the 2yr last around 2.965%, while the 10yr is just under 4.35%. Front end yields continue to make fresh multi year lows. 

• US Tsy yields finished Tuesday US cash trade weaker, led by the front. The bias remained for curves twisting steeper (2s10s +2.75 at 57.695; 5s30s +6.248 at 116.532) with 2s-10s near late session highs vs. weaker Bonds. Markets continued to digest Trump's unprecedented "firing" of Fed Gov Cook late Monday, projected rate cuts rising as Trump works toward a majority on the Fed Board in the near term.
• For NZ swap, the 2yr rate was last little changed near 2.75%.
• Via BBG, NZ Treasury will off NZ$1.8bn in bonds in September. "Each weekly auction will offer NZ$450m bonds".
• The local data calendar is empty today, but be mindful of spillover from Australia's July CPI print. 

• RES 3: 97.190 - High May 5 2023
• RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg 
• RES 1: 96.860 - High Apr 07
• PRICE: 96.590 @ 16:01 BST Aug 26
• SUP 1: 95.900 - Low Jan 14  
• SUP 2: 95.760 - Low 14 Nov ‘24
• SUP 3: 95.480 - Low Jan 11 2023 and a major support 

Aussie 3-yr futures gapped sharply higher on the back of the recent soft US NFP data, and the most recent Aussie CPI print should also prove supportive. Recent price action has narrowed the gap with resistance at 96.730, the Sep 17 ‘24 high, leaving 96.860 as the next key level. Any continuation lower would instead strengthen a bearish theme. This would refocus attention on 95.760, the 14 Nov ‘24 low. Conversely, a reversal higher would refocus attention on 96.860, the Apr 7 high.

Source: Bloomberg Finance L.P./MNI