New Zealand bonds surge at close in silent trading week end as investors cover previous short positions

New Zealand government bonds surged at the time of closing on the last trading day of the week Friday as investors covered previous short positions, following global uncertainties and fears of a trade war, sparked by steps taken by United States President Donald Trump.

At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 6-1/2 basis points to 2.96 percent, the yield on 20-year plunged 9 basis points to 3.47 percent and the yield on short-term 2-year closed 1 basis point higher at 1.97 percent.

There was much to digest overnight, with US president Trump signing executive orders on steel and aluminum tariffs to be effected on March 23 with Canada and Mexico exempted for the time being pending NAFTA renegotiations.

Meanwhile, the NZX 50 index closed 0.37 percent higher at 8,390.00, while at 06:00GMT, the FxWirePro's Hourly NZD Strength Index remained highly bullish at 103.68 (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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