S&P Raises New Zealand Ratings on Faster-Than-Expected Recovery

The New Zealand dollar jumped to its highest since April 2018 at $0.7338, and bond yields rose in recent weeks as the economy beat all expectations and investors bet on a cut back to stimulus this month.

10-year bond yields jumped to 1.66% today, the highest since the pandemic outbreak in March, after rising 64 basis points since the start of the year.

Meantime, the Reserve Bank of New Zealand (RBNZ) is expected to keep interest rates unchanged on Wednesday.