3 Feb 2015
NZGBi bonds to attract offshore investors – Westpac
FXStreet (Barcelona) - Imre Speizer, Director, NZ Rates Strategy at Westpac, shares that NZ inflation-linked bonds remain attractive for offshore investors, having yields well above its international peers.
Key Quotes
“NZ inflation-indexed government bonds saw sharp falls in both real yields and break-even inflation rates during the past year. They remain attractive from a global perspective, having real yields well above international peers.”
“NZ real yields remain well above those of comparable global inflation bonds. They have cheapened most against Australia and the UK, while the NZ-US spread is around mid-range. Offshore investors should remain attracted to NZGBis.”
“Global monetary policy easing during the past year will add to the already large pool of liquidity searching for high real yields.”
“We have observed offshore investment flows pushing nominal NZGB swap spreads wider during the past month, and expect this behaviour to spillover into the inflation-linked asset class.”
Key Quotes
“NZ inflation-indexed government bonds saw sharp falls in both real yields and break-even inflation rates during the past year. They remain attractive from a global perspective, having real yields well above international peers.”
“NZ real yields remain well above those of comparable global inflation bonds. They have cheapened most against Australia and the UK, while the NZ-US spread is around mid-range. Offshore investors should remain attracted to NZGBis.”
“Global monetary policy easing during the past year will add to the already large pool of liquidity searching for high real yields.”
“We have observed offshore investment flows pushing nominal NZGB swap spreads wider during the past month, and expect this behaviour to spillover into the inflation-linked asset class.”