Money Market

US Federal Reserve increases rate

The FOMC meeting took place a short while ago, the Fed hiking by 75bps (as expected) and significantly revising up its interest rate forecasts, says BNZ Markets this morning. “The new ‘dot plot’ implies the Fed will raise rates by 75bps and then 50bps at its remaining two meetings of the year with a peak in the cash rate of 4.6% now projected for next year,” copmments Jason Wong, senior markets strategist. The initial reaction has seen a further flattening of the US yield curve (short-end...

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Nervous markets shift risk sentiment

Risk sentiment has soured, with nerves ahead of the Fed’s policy announcement tomorrow and news that votes on annexation will be held in some Russian-held Ukraine territories, opening the door for an escalation in the war, comments BNZ Markets. Global rates have pushed up to fresh highs and Sweden’s Riksbank surprised the market with a jumbo 100bps hike, says Jason Wong, senior markets strategist at BNZ Markets. Safe-haven currencies have outperformed, and the NZD continues to fall to fresh...

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Markets edgy ahead of Fed decision this week

Nerves ahead of the Fed’s policy meeting later this week have driven US Treasury rates up to fresh highs, with the 2-year rate just under 4% and the 10-year rate breaking above 3.5%, says Jason Wong, senior markets strategist at BNZ. “The USD remains well supported, while the NZ dollar continues to underperform, falling to fresh multi-year lows against the USD and AUD. “It has been a quiet start to the week for financial markets, with the UK and Japan on holiday and attention focused on the...

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Voilatile week past, more action coming up this week

After another extremely volatile week, Friday saw some consolidation in global rates and currencies, says BNZ Markets this morning. “ Early session strength in the USD saw more milestones reached in the FX market, USD/CNY breaking 7.0, the GBP hitting its lowest level since 1985, and the NZD hitting a fresh 2½-year low, before a late turnaround saw the USD reverse most of these gains,” says Nick Smyth. “Equities were lower again, capping off a week where the S&P500 fell almost 5%.  NZ...

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Markets stabilising – focus on yen

`15.9.22 Markets have shown signs of stabilising overnight after their big moves post the upside surprise to US CPI, says BNZ Markets. The US 10-year rate is little changed, still within striking distance of its recent 11-year high, while the S&P500 and NASDAQ are broadly flat as well. Jason Wong, senior markets strategist says, “The JPY has been the standout mover in the currency market, up around 1%, as Japan steps up its FX intervention warnings.  The NZD is hovering around the 0.60...

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Higher US inflation stuns markets

A much stronger than expected US CPI print has shocked a market that was positioned for another good result, commented BNZ Markets’ senior market strategist Jason Wong this morning. “The markets see the Fed reacting with tighter policy, with the debate shifting to a 75bps or 100bps hike next week. “Rates are higher across the curve, led by the short end, causing more curve inversion. The USD showed broad-based strength and the NZD has broken below 0.60 again to fresh lows. US equities are down...

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Weaker US dollar sees Kiwi increase

13.9.22 The new week has begun as last week ended, with positive risk sentiment that sees solid gains in global equities and broad-based weakness in the US dollar, notes BNZ Markets.. The US 10-year rate continues to see some upside yield pressure, adds senior markets strategist Jason Wong. The NZD traded above 0.6150 overnight, since retreated a little, and the AUD traded as high as 0.69. “Risk sentiment has risen over the past week reflecting a number of factors – the election of new PM...

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Indicative rates for Napier Port bond offer

12.9.22 Napier Port has announced the indicative issue margin and minimum interest rate to be used in setting the interest rate to apply to its recently announced bond offer. The offer is up to $75 million (inclusive of the Shareholder Priority Offer and with the ability to accept oversubscriptions of up to an additional $25 million at Napier Port’s discretion) of unsecured, unsubordinated, fixed rate 5.5 year bondsmaturing on 23 March 2028. The interest rate for the bonds will be set as the...

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NZ dollar appreciates on USD selling

12.9.22 For no obvious reason, the US dollar met some significant selling pressure during Friday’s Asian trading session, but it managed to regain some poise and was flat during the overnight session, says Jason Wong at BNZ Markets. “The NZD ended the week just over 0.61. More hawkish Fed-speak kept upside pressure on US short-end rates, seeing the 2-year rate end the week at a fresh 15-year high and resulting in more yield curve inversion. US equities ended the week on a strong note, fuelled...

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Action-packed session- NZD brief look under US$0.60

8.10.22 There has been plenty of news and price action over the past 24 hours, notes BNZ Markets this morning Broad USD strength saw new FX milestones, including the NZD dipping below 0.60 yesterday, but a swing in the USD overnight has seen a reversal of those moves, says senior markets strategist Jason Wong., “Global rates are much lower, with the UK 2-year rate plunging 18bps, the biggest mover on the day on fresh UK news. Lower rates are supporting US equities even as the market moves...

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