5 Jun 2015
RBNZ's OCR curve - bullish on 10yrs - BNZ
FXStreet (Guatemala) - Raiko Shareef, currency strategist at BNZ noted that the NZ interest curve steepened yesterday, as the sell-off in global bond yields encourage steep rises at the longend.
Key Quotes:
"The 10-year swap yield closed 12bps higher at 4.09%. With the 2-year swap posting a much more contained 4bp rise, the 2s10s curve steepened up to 72bps."
"With expectations of a lower OCR likely to prevail even if the RBNZ does not cut rates next week, we maintain our view that the curve will steepen back above 75bps, as the US 10-year bond yield trades up to 2.50%."
Key Quotes:
"The 10-year swap yield closed 12bps higher at 4.09%. With the 2-year swap posting a much more contained 4bp rise, the 2s10s curve steepened up to 72bps."
"With expectations of a lower OCR likely to prevail even if the RBNZ does not cut rates next week, we maintain our view that the curve will steepen back above 75bps, as the US 10-year bond yield trades up to 2.50%."