NZ bonds rally in June quarter as interest rates seen lower for longer

Fri, 01 Jul 2016

By Paul McBeth July 1 (BusinessDesk) - New Zealand bonds rallied in the second quarter as investors anticipated central banks keeping interest rates lower for longer in the face of events such as the UK's vote to exit the European Union. The yield on the benchmark 10-year government bond fell to 2.385 percent as at June 30 from 2.98 percent on March 31, having touched an all-time low 2.3 percent in the wake of the Brexit. Yields on corporate debt also fell, with Fonterra Cooperative Group's 2021 bonds down 25 basis points to 3.73 percent...

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