New Zealand bonds closed mixed Monday amid silent trading session as investors remained focused on the upcoming GlobalDairyTrade (GDT) auction, scheduled for Tuesday.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, closed 1 basis point lower at 3.005 percent, the yield on the 7-year note also ended 1 basis point down at 2.850 percent and the yield on short-term 2-year closed1 basis point higher at 2.115 percent.
In the last GDT auction, it the dairy prices rose by 0.9 percent for consecutive time followed by a gain of 0.3 percent. The dairy prices fell by 0.4 percent and 1.6 percent at the two successive auctions in August.
According to ANZ report, tomorrow’s GDT auction is expected to see a rise in whole-milk powder prices by 3% and no change for other products.
On the other, the markets still digest the RBNZ dovish statement, which came out last week. The central bank left the official cash rate unchanged at 1.75 percent, while highlighting sluggish economic growth and below target inflation.
