We are looking at the WEEKLY chart of Kiwi Bond rates. As you can see we had a false break out @ 1.8030 rates have since struggled to get above this level, with strong bearish momentum now, with both the 20MA and the Oscillator showing strong bearish movement, we look to head lower towards the 1.0050 level.
Updates to be posted
As the US 10 year yields rise - they impact more than just the price of stocks. The Carry trade or difference between a funding currency and investment currency is also impacted.
While both New Zealand and the US ten year rates are rising, the difference between New Zealand 10 Year Yields and US 10 Year rates is diminishing. This makes the NZDUSD carry trade less...
The NZ yields are sitting above a psychological level of 1% and have been flirting with this level for a couple of weeks. This is undoubtedly driving demand for the commodity currency, which has now hit 0.722 along with the general risk on mood that is pervading markets at year end. As we go into the European trading session of the year, the big question is will...
New Zealand 10 Year Bond Yields have fallen back to just over 0.900, limiting the upside for the Kiwi against the USD. Meanwhile the Aussie which has maintained 10 year yields over 1% is pushing to new highs at 0.7480.
NZ 10 Year yields have been soaring thanks to a more hawkish RBNZ which held rates at 0.25% when Australia lowered theirs to 0.10%. Talks of negative rates by Orr and other Bank members have dwindled. The impact is that NZ yields continue to climb and likely reach 1% before it's neighbours.
With the RBNZ moving to a more hawkish stance in November, NZ 10 Year Bond yields have surged to highs not seen July. This all bodes well for a stronger NZD against the USD.
Comparing NZ 10Y Yield with AU 10Y Yield we can see the divergence opening up. The local stories in NZ are looking a lot worse than in Australia for now, depriving the NZ 10Y Yield of completing the base formation.
On the currency side, the strategic link between AUD and NZD is being threatened by AUD breaking up and flirting to complete the leg towards 1.12...
