Analysts at ANZ point out that as per their expectations of rolling over of NZ economy and the risk that receivers will get impatient and short end yields will drift higher has obviously occurred, both prior to and following the strong Q2 GDP figures – assisted of course by the weakness in global fixed income markets more generally.
Key Quotes
“Strategically, we still prefer to play things from the long side, and think the RBNZ will retain a cautious message and its “up or down” language this week. However, funding markets into quarter-end need to be watched (and could potentially help generate better entry points for fresh longs). The FOMC decision obviously has the potential to dictate direction too, with our global colleagues expecting the dot plots to show a dovish shift.”
Share
