The Markets And The MPS...Hardly A Blip
Today's Reserve Bank Monetary Policy Statement caused hardly a blip in the financial markets.
The announcement might have been expected to lead to expectations of higher rates flowing through and upwards pressure on the dollar. Apart from a very brief reaction on the announcement there has been no reaction at all.
This morning ten year bonds rallied before the announcement on the back of US bond movements. Ten year benchmark bonds were trading at 6.85% immediately before the announcement and during the day fell back to where they had been closing on 6.95%.
Meanwhile 90 Day Bill Rates remained static - before the announcement they were selling for 4.76%, immediately after they rose as high as 4.79% before falling back to close at 4.77%.
Ditto the dollar - solid as a rock - from US 52.85 cents before the announcement the Kiwi rose briefly to a high of 53.04 cents before falling back to 52.82 cents at close.