New Zealand government bonds closed mixed Tuesday as investors wait to watch the country’s GlobalDairyTrade price auction, scheduled to be held later today and the third-quarter gross domestic product (GDP) data, due on December 20 at 21:45GMT for further direction in the debt market.
At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.73 percent, the yield on the 20-year note rose 1-1/2 basis points to 3.28 percent and the yield on short-term 2-year ended 1-1/2 basis points lower at 1.93 percent.
This week’s GDP report is expected to show that economic growth slowed to just 0.4 percent through the September quarter. In part, this slowdown reflects the impact of some temporary factors. Poor weather through the middle part of the year put a dampener on agricultural production.
"We expect that GDP growth over 2017 as a whole will come in at just 2.4 percent. That’s down from 3 percent over 2016. And after adjusting for rapid population growth over the past year, we’re left with a picture of relatively flat per capita economic growth," Westpac Research commented in its recent report.
Meanwhile, the NZX 50 index closed 0.68 percent higher at 8,401.20, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 39.34 (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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