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21.04.201701:49:00UTC+00New Zealand Bonds End Session on Timid Note on rise in Investors’ Risk Sentiment

The New Zealand bonds ended the session on a timid note Friday on rising risk sentiments of investors ahead of this weekend's first round of voting in the French presidential election. Also, the country’s inflation rose to a 5-year high, which further waned investors from safe-haven assets.

At the time of closing, the yield on the benchmark 10-year bond, which moves inversely to its price, jumped 2 basis points to 2.99 percent, the yield on 7-year note also surged 2 basis points to 2.70 percent and the yield on the short-term 2-year note too traded 2 basis points higher at 2.12 percent.

With millions of French voters still undecided or planning to abstain, the vote is the most unpredictable in France in decades and investors are nervous about potential last-minute surprises that could trigger market turmoil.

New Zealand’s consumer prices rose 1.0 percent in the March quarter, lifting the annual inflation rate from 1.3 percent to 2.2 percent. This is the first time inflation has been above 2 percent since 2011. The result was above the market median for a 0.8 percent rise. Importantly, it was well above the RBNZ’s February MPS forecast of a 0.3 percent quarterly rise.

Meanwhile, the New Zealand’s benchmark S&P/NZX 50 Index rose 0.13 percent to 7,197.21 at the time of closing, while at 05:00GMT the FxWirePro's Hourly NZD Strength Index remained neutral at 1.72 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex



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