New Zealand bonds decline at close after dairy prices improve at latest GDT price auction

New Zealand bonds declined at the time of closing Wednesday after dairy prices improved at the latest GlobalDairyTrade (GDT) price auction, albeit still remaining on the downside amid an otherwise, silent market session that witnessed data of little economic significance.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, rose 1 basis point to 2.77 percent, the yield on the long-term remained flat at 3.34 percent and the yield on short-term 2-year too closed 1 basis point higher at 1.90 percent.

The GDT price index improved at the overnight auction, although falling 1.3 percent from the previous auction three weeks ago. The average price was USD3487 a tonne. Some 21,580 tonnes of product was sold, up from 18,161 tonnes three weeks ago.

Fonterra had said on Tuesday that its total New Zealand milk production in April rose 3 percent, driven largely by more favorable weather conditions. 

Meanwhile, the NZX 50 index closed 0.64 percent higher at 8,813.45, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 54.81 (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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