New Zealand’s 10-year government bond yield fell to around 4.47% as bonds rallied following the government’s mid-year budget, which outlined a modest reduction in near-term bond issuance. The Treasury said it will issue NZ$3 billion fewer bonds in the year ending June and NZ$2 billion fewer in the following year. Over the four years through 2029, however, the total program will reach NZ$135 billion, slightly above the May projection by NZ$3 billion. Adding further pressure, markets scaled back expectations for rate hikes next year after Governor Anna Breman signaled the official cash rate is likely to remain unchanged for some time, with a slight chance of a near-term cut. She also noted that financial conditions have tightened more than expected. Swaps now price rates on hold until late next year, with a hike expected in October, up from September previously.