Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The New Zealand government bonds little changed Tuesday as investors remain sidelined in any big deal ahead of the Federal Reserve’s last monetary policy decision for 2016.
The yield on the benchmark 10-year bond, which moves inversely to its price, closed flat at 3.31 percent, the yield on 7-year note ended steady at 2.87 percent and the yield on short-term 2-year note remained unchanged at 2.20 percent.
On Monday, Bill English has been elected by the National Party as the new Prime Minister of the country, with Paula Bennett being sworn-in as his deputy. The new PM will join office post-Christmas; however, there has been no decision yet over the appointment of the new Finance Minister.
Markets remain focused on the Federal Reserve last monetary policy decision for 2016, which is scheduled to be released on December 14. The Federal Reserve is expected to increase the target range of the key interest rate by 25 basis points to 0.50-0.75 percent, with a unanimous decision. Little change to the statement, though the Committee is likely to acknowledge that market-based measures of inflation compensation have risen further.
Moreover, the Reserve Bank of New Zealand Governor Graeme Wheeler in its recent speech said that the interest rates are probably low enough to return inflation to his 2 percent goal amid a robust economic expansion. He said the exchange rate is higher than the economic fundamentals would suggest is appropriate, but the global forces that have boosted the kiwi dollar may be abating.
Wheeler also reiterated that the bank remains concerned about the booming housing market, which has been fuelled by record-low borrowing costs. House-price inflation is much higher than desirable and poses concerns for financial stability.
Meanwhile, the New Zealand’s benchmark S&P/NZX50 Index closed down 25.83 points to 6,850.21. While at 05:00 GMT, the FxWirePro's Hourly New Zealand Dollar Strength Index stood neutral at +42.07 (higher than +75 represent a bullish trend).
