RBNZ sees reduced inflation risk

New Zealand debt markets ended strongly on Jan. 24 after the Reserve Bank's comments on the inflation outlook were interpreted as having a dovish tone for rates. The central bank, in leaving its official cash rate unchanged at 6.50 percent, said it saw a reduced risk of "generalised spillover" from the current spike up in inflation.

Short rates rallied sharply in response, March 2001 bank bill futures gaining 12 basis points to end at 93.62, on high turnover of 7,288 lots. The New Zealand doll