NZ shares slightly lower with US inflation data

Overnight US inflation data was softer than expected, with the headline consumer price index up just 0.1% in August as used car and hotel prices eased back from high levels.

Long-dated NZ government bond yields declined almost 8 basis points as they fell with US bonds.

Short term bond yields are more influenced by the Reserve Bank of New Zealand and so remained unchanged, resulting in a somewhat flatter yield curve.

“The seemingly outsized impact of the 0.1% miss shows just how sensitive markets are to inflation at present,” said ASB economist Mike Jones.