Sep
NZ dollar steady near 3-week highs, bonds flat
The New Zealand dollar settled around $0.69 on Tuesday, holding firm on a broadly weaker U.S. dollar as worries about a U.S. financial bailout plan infected markets.
* NZ dollar trades well short of a three-week high offshore at $0.6953, settling into a $0.6887-$0.6923 range.
* Kiwi’s support comes from a weaker U.S. dollar, as concerns over the cost and impact of the U.S. government’s $700 billion rescue package hurt sentiment, sending stock markets lower.
* Kiwi loses ground against the yen and the euro <NZDEUR=R>, reflected in a lower NZ dollar trade weighted index <=NZD>.
* Short-term support for the NZ dollar seen at $0.6860 with resistance at $0.6940.
* NZ bonds unchanged after previous day’s sharp decline. U.S. Treasuries have a mixed showing with short-dated paper firming but long-dated maturities easing.
* NZ two-year swap rate at 6.97/7.00 percent compared with Monday’s 6.91 percent.
————Sept 23 snapshot at 2.00 p.m. (0200 GMT)———–
(figures in brackets are from Sept 22)
90-DAY BILLS (DEC) 92.76 (PREV 92.75) 90-DAYS 7.83 (PREV 7.86)
90-DAY BILLS (MAR) 93.03 (PREV 93.06) 07/09 6.00 (PREV 6.00)
90-DAY BILLS (JUN) 93.25 (PREV 93.29) 11/11 5.74 (PREV 5.74)
NZD TRADE WEIGHTED 64.13 (PREV 64.70) 04/13 5.79 (PREV 5.79)
NZD/USD 0.6887/93 (PREV 0.6873/79) 12/17 5.88 (PREV 5.88)
NZD/AUD 0.8182/97 (PREV 0.8275/89) RBNZ MCI+ 665 (PREV+ 713)
NZD/EUR 0.4658/65 (PREV 0.4745/52) US 10-YR 3.83 (PREV 3.78)
NZD/JPY 72.52/66 (PREV 73.26/38) AU 10-YR 5.77 (PREV 5.79)
***SPREADS: NZ/US 10-YR +205 (+210) NZ/AUS 10-YR +11 (+9)***
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Source:http://www.afxnews.com
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