New Zealand bonds close higher ahead of RBNZ Assistant Governor McDermott’s speech, March business PMI

New Zealand government bonds closed higher as investors wait to watch the Reserve Bank of New Zealand (RBNZ) Assistant Governor McDermott’s speech, scheduled to be held today at 23:00GMT. Also, a private survey of business PMI, due on April 12 by 22:30GMT shall add further direction to the debt market.

The yield on New Zealand’s benchmark 10-year Treasury note, which moves inversely to its price, fell 1-1/2 basis points to 2.81 percent, the yield on the long-term 20-year note slumped 2-1/2 basis points to 3.40 percent and the yield on short-term 2-year closed 2 basis points lower at 1.92 percent.

Further, the country’s ANZ Truckometer Heavy Traffic Index fell 0.3 percent m/m in March, to be down 0.7 percent for the quarter (charts are 3-month average). This isn’t a strong signal for GDP growth, but the index has been volatile lately.

On the other hand, the Light Traffic Index bounced 2.2 percent m/m, after a few months of fairly lackluster performance. This index is giving a softer signal for growth from mid-year, but the bounce-back is encouraging.

Meanwhile, the NZX 50 index closed 0.19 percent lower at 8,453.72, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 67.38 (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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