New Zealand bonds closed mixed Tuesday as investors remained sidelined in a muted trading week that is scheduled to witness no data of major economic significance. Also, the G-7 meeting had a very limited impact on market movements, leaving debt prices in a range-bound structure.
At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, slid 1/2 basis point to 3.01 percent, the yield on the long-term rose 1/2 basis point to 3.33 percent and the yield on short-term 2-year too closed 1/2 basis point lower at 1.91 percent.
The negative takeaway from the G7 meeting had limited impact on the market on Monday and market is waiting patiently for the upcoming Trump-Kim summit. Chairman Kim’s first-ever public casual selfie with Singapore’s Foreign Minister Vivian Balakrishnan last night has normalized the image of world’s most mysterious leader three months ago.
This fuelled some hopes that the Summit may yield a positive outcome, supporting the risk sentiment. Global equity market ended higher slightly and US Treasury yields edged higher marginally.
The auction of 3-year US Treasury bonds on Monday received a strong bid from indirect bidders including fund managers and central banks. The yield for USD32 billion was at 2.664 percent, slightly below the secondary pricing before the auction
Meanwhile, the NZX 50 index closed 0.24 percent higher at 8,959.81, while at 05:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 122.71 (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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