New Zealand bonds flat in muted session as investors await Q4 consumer inflation data

New Zealand government bonds remained flat Tuesday as investors remained sidelined in any major trading activity amid a muted session that witnessed data of least economic significance. Also, investors are now awaiting the country’s fourth-quarter consumer inflation data, scheduled to be released on January 24 by 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, slipped 1/2 basis point to 2.99 percent, the yield on 20-year hovered around 3.46 percent and the yield on short-term 2-year too ended nearly flat at 2.05 percent.

Market participants expect a modest +0.4 percent q/q for Thursday’s fourth-quarter CPI report from New Zealand. However, the annual inflation rate is seen unchanged at 1.9 percent and their forecast seems to be in line with the RBNZ’s November 2017 projection.

Meanwhile, the NZX 50 index closed 0.33 percent lower at 8,207.63, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bearish at -119.35 (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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