In local morning trading, NZGBs are 2-6bps richer, with the curve bull-flattening. Post local market close on Tuesday the RBA kept rates on hold, with a less hawkish tone than the market expected, ACGBs yields closed 4-8bps richer.

• US Tsys finish Tuesday's session flat to 4bps richer, curves flatter with early session support in the short end evaporating as the session carried on after heavy (over $20B) corporate issuance coupled with the $58B 3Y note auction.
• The NZGB curve has bull-flattened early, the 2Y is -2.8bps at 4.692%, 10Y is -5.3bps at 4.651%.
• Swap rates are little changed in early morning trading
• RBNZ dated OIS pricing is little changed this morning. A cumulative 43.5bps of easing is priced by year-end.
• Earlier, the GDT Price Index increased significantly from 0.1% to 1.8%, signaling a positive trend in the dairy market. While whole milk power average prices rose to $3,350 a ton, with the index rising 2.4%.
• Looking Ahead: Today the local calendar is empty with, NZ to Sell 7yr, 10yr 20yr bonds on Thursday and BusinessNZ Manufacturing PMI on Friday