RBNZ's Spencer says narrow yield premium on NZ bonds vs US may widen again

Thu, 08 Feb 2018

By Rebecca Howard Feb. 8 (BusinessDesk) - Reserve Bank acting governor Grant Spencer says the narrow yield premium on New Zealand government bonds versus their US counterparts may not last - despite the divergent interest rate tracks between the central banks. New Zealand 10-year government bonds are currently yielding 17 basis points more than comparable US Treasuries compared to a historical norm of 100-150 basis points. The yield gap, or premium, has narrowed because the yield on 10-year US Treasuries have gained more than 40 basis po...

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