Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The New Zealand government bonds closed lower Tuesday as investors bet on Hillary Clinton to claim the White House after FBI Director James Coney said that the case against U.S. Democrat presidential candidate Hillary Clinton mishandling classified emails is closed again.
Also, rising speculation that the Reserve Bank of New Zealand will lower its official cash rate by 25 basis points to a new record low of 1.75 percent in its Thursday’s monetary policy meeting limited the growth in Treasury yields.
The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1-1/2 basis points to 2.825 percent, the yield on 5-year note ended nearly 2 basis points higher at 2.363 percent and the yield on short-term 2-year note bounced 1 basis point to 2.110 percent.
Global Treasury yields jumped after FBI Director James Coney released an official statement saying that Hillary Clinton has been cleared and they did not change any conclusions that were expressed in July with respect to Secretary Clinton. This announcement removed clouds of suspicion around her campaign and potential Presidency.
The Reserve Bank of New Zealand’s decision on the OCR is due out 9th November and Graeme Wheeler’s intimations that further cuts are required going forward certainly seem to hint that rates could be lowered.
“We expect the Reserve Bank to reduce the OCR to 1.75 percent next week. The RBNZ has strongly signalled a further easing, and failing to deliver could lead to an unwanted and self-defeating market response. Beyond next week’s decision, the RBNZ is likely to retain a mild bias towards further easing. But we expect the OCR to remain on hold through 2017,” said Westpac in its research note.
We also support the fact that the Reserve Bank of New Zealand is still widely expected to cut rates at its November 10 policy meeting to 1.75 percent.
Meanwhile, the New Zealand’s benchmark S&P/NZX50 Index closed up 22.09 points to 6,894.36.
