New Zealand government bonds closed mixed Tuesday as investors wait to watch the country’s GlobalDairyTrade (GDT) price auction, scheduled to be held later today and the retail sales for the fourth quarter of 2017, due on February 22 by 21:45GMT.
At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, surged 1-1/2 basis points to 3.01 percent, the yield on 20-year also climbed 1-1/2 basis points to 3.52 percent while the yield on short-term 2-year closed 1 basis point lower at 1.89 percent.
Fonterra Co-operative Group may lift its farmgate milk price payout to farmers this season, following a rise in GDT auction prices, according to brokerage firm OMF, NBR reported.
The country’s dominant milk processor said that it expects to pay its farmer suppliers NZD6.40/kg of milk solids for the 2017-18 season; however, OMF believes that strengthening dairy prices have pushed up the expected payout in its modeling to NZD6.78/kgMS.
Meanwhile, the NZX 50 index closed 0.21 percent lower at 8,098.27, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained slightly bullish at 86.76 (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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