The New Zealand government bonds started the week on a stronger note, following firmness in U.S. Treasuries. Also, investors sought refuge in safe-haven assets, after the United States President Donald Trump mentioned of how protectionist policies can bring growth and prosperity to the economy in the 45th Presidential Inaugural ceremony held on Friday.
Also, investors are eyeing the country’s consumer price inflation data scheduled to be released on January 26.
In intraday trading, the yield on the benchmark 10-year bond, which moves inversely to its price, plunged 2-1/2 basis points to 3.25 percent, the yield on 7-year note ended nearly 3-basis points lower at 2.92 percent and the yield on short-term 2-year note also slipped 2-1/2 basis points to 2.30 percent.
In his much anticipated inauguration speech, President Trump largely focused on the main principle that won him the election: a strong anti-establishment message and putting America above all else.
"Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs," ANZ reported, citing Trump’s original speech.
Lastly, the country’s headline inflation is likely to have accelerated in the fourth quarter. According to an ANZ research report, the headline CPI is expected to have accelerated 0.3 percent sequentially, a tad above RBNZ’s November MPS pick of 0.2 percent. Annual inflation is anticipated to rise to 1.2 percent.
Meanwhile, the New Zealand’s benchmark S&P/NZX50 Index closed 0.27 percent higher at 7,067.85, while at 5:00 GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 35.56 (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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