Thursday, 21 February 2008

Large Issuance Of NZD Bonds Props Kiwi - RBC

[Dow Jones] Chunky NZD-denominated uridashi and eurokiwi issues over past 2 months has helped to remove "an otherwise significant drag on NZD," says RBC Capital Markets senior FX strategist Sue Trinh; notes issuance of these bonds have offset redemptions recently, leading to positive net issuance for 1st time since July 2007.

In January there were NZ$1.7 billion of these bonds issued vs scheduled redemptions NZ$1.3 billion, February issuance so far NZ$1.7 billion vs scheduled redemptions NZ$1.6 billion.


Still more coming in than going out, expect NZD/USD to continue to trade higher ahead of RBNZ Monetary Policy Statement on March 6th.

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