New Zealand bonds gain at close in muted trading week; two-tier data in focus

New Zealand government bonds gained at the time of closing Monday as investors remained muted in a silent trading week amid a host of two-tier economic data, scheduled to be released through this week.

The yield on New Zealand’s benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.81 percent, the yield on the long-term 20-year note also slid 1 basis point to 3.41 percent and the yield on short-term 2-year closed 2 basis points lower at 1.92 percent.

With China responding to US’ latest plan to slap tariffs on an additional US$100b of exports to warn of a “fierce counter strike” and to fight back “at any cost”, and US President Trump tweeting “China will take down its trade barriers because it is the right thing to do.

Taxes will become reciprocal & a deal will be made on Intellectual Property”, the tit-for-tat rhetoric appears to be the name of the game for now and this should warrant investor caution into possibly another eventful week, albeit North Korea will discuss denuclearization in its upcoming talks with the US.

Meanwhile, the NZX 50 index closed 0.73 percent higher at 8,454.13, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 157.53 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest