NZ Rates: Short end largely in a holding pattern - ANZ

Analysts at ANZ note that the New Zealand’s short end is largely in a holding pattern right here.

Key Quotes

“We maintain a strategically bullish mind-set, but with the market already pricing in roughly 9bps of cuts, it is going to take a reasonable catalyst for that to push further in the near term.”

“The New Zealand curve has decoupled from the US, which is a theme we see persisting (especially in sell-offs). But with Treasuries catching a bid here (and 3% in the 10-year looking some way away), we wonder if the local market – which has been looking for excuses to bull-flatten – could ‘re-hitch its carriage’ to a degree, and flatten further.”