New Zealand bonds mixed after GlobalDairyTrade price index improves, albeit in red

The New Zealand bonds closed mixed Wednesday after global dairy prices improved, albeit still in the negative zone at the latest GlobalDairyTrade (GDT) price auction, held late yesterday.

At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, fell 1 basis point to 2.710 percent, the yield on the long-term 20-year note hovered around 3.023 percent and the yield on short-term 2-year closed nearly 2-1/2 basis points lower at 1.855 percent.

According to a report from Reuters, global dairy prices fell for the fifth time in a row at an auction early on Wednesday as supply remained robust from largest seller New Zealand and other areas of the world. The GDT Price Index dipped 0.3 percent, with an average selling price of $2,885 per tonne at the fortnightly auction. The index fell 1.9 percent at the previous sale, according to GDT Events.

Meanwhile, the NZX 50 index closed 1.23 percent higher at 8,911.79, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 131.67 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex