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New Zealand 10-year government bond yield is trading at its lowest point since the market was formed in 1985, as the Reserve Bank of New Zealand kept interest rates unchanged at 1.75 percent, as expected, but said the next move is likely to be down.

The dovish shift surprised markets, which were expecting the central bank to retain neutral bias on interest rates.  

The 10-year yield has dropped by ten basis points in the last 30 minutes and is currently trading at a record low of 1.78 percent.  

The bond yields across the globe have dropped sharply in the last few days, with the German 10-year turning negative for the first time since 2016, possibly due to the dovish stance adopted by both the Fed and the European Central Bank.