New Zealand bonds close higher after U.S. 10-year Note yield falls below 3 pct mark; market awaits Q1 employment report

New Zealand bonds closed Monday’s session on a sharply higher note after the United States 10-year note yield slipped below the 3 percent psychological mark after weak consumer spending data muted a better-than-expected initial first-quarter read on economic growth.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, slumped 5 basis points to 2.85 percent, the yield on the long-term 20-year note plunged 6-1/2 basis points to 3.41 percent and the yield on short-term 2-year closed 2-1/2 basis points lower at 1.89 percent.

On Friday, the initial reading on the first-quarter gross domestic product was 2.3 percent, a broad indicator of the health of the economy, ahead of consensus estimates of 2 percent, according to economists polled by Thomson Reuters.

Investors will now remain focused on the country’s GlobalDairyTrade (GDT) price index and employment report for the first quarter of this year, both scheduled to be released on May 1, for further direction in the debt market.

Meanwhile, the NZX 50 index closed 0.69 percent higher at 8,428.94, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at -50.09 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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