New Zealand bonds end lower after NZX 50 pushes higher despite Trump’s Fed comments, escalation in trade rhetoric

New Zealand bonds ended lower on the last trading day of the week Friday after the country’s domestic stock index NZX50 closed the day on a higher note, snapping recent losses, as Fisher & Paykel Healthcare Corp and Ryman Healthcare stocks supported investors’ sentiments.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, slid 1 basis point to 2.89 percent, the yield on the long-term 20-year note also slipped 1 basis point to 3.21 percent and the yield on short-term 2-year closed 1-1/2 basis points lower at 1.85 percent.

U.S. President Trump said he was “not thrilled” at the Fed hiking rates “but at the same time I’m letting them do what they feel is best”, which took the USD lower amid market concerns for the independence of the central bank, albeit the White House later issued a statement saying that the president respects the Fed’s independence.

China’s Commerce Ministry spokesman said in its regular weekly briefing that China will be forced to react to additional tariffs on USD200 billion worth of Chinese goods, though he did not give details, adding to sparks of rebound in trade fears escalation. In addition, the SAFE spokesperson said in its press conference that China will use counter cyclical measures to iron out the short term volatility in the currency market to safeguard the financial system and maintain a balanced Balance of Payments.

Meanwhile, the NZX 50 index closed 0.43 percent higher at 8,955.54, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 30.19 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex