AUSSIE BONDS: Slightly Richer Post-CPI, Mixed On The Day

NZGBs closed 5-10bps cheaper, led by the 5-year. Accordingly, NZGBs sit amazingly 18-38bps higher than pre-RBNZ levels. (see chart)

• On a relative value basis, the 5-year swap is at its cheapest valuation since mid-2022, based on the 2-/5-/10-year butterfly spread.
• Versus the $-bloc, NZGBs also underperformed sharply, with the NZ-US and NZ-AU 10-year yield differential 5-6bps higher. At +30bps, NZ-US differential is back at April levels.
• Swap rates closed 10-13bps higher, with a steeper 2s10s curve.
• RBNZ-dated OIS pricing closed firmer across meetings. No easing is now priced for February, while November 2026 assigns 44bps of tightening.
• The local calendar was empty today and will remain so until Wednesday, when RBNZ Governor Breman hosts a media Q+A alongside Net Migration data.
• On Thursday, the NZ Treasury plans to sell NZ$175mn of the 4.50% May-30 bond, NZ$200mn of the 3.50% Apr-33 bond and NZ$75mn of the 5.00% May-54 bond.

Bloomberg Finance LP

MNI discusses the BOJ's stance on recent JGB yield moves. 
On MNI Policy MainWire now, for more details please contact sales@marketnews.com

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