New Zealand government bonds extended gains after the country reduced its projected bond issuance plan. The 5-year government bond led the rally, with its yield falling 11 basis points to 3.70%. The 10-year bond yield dropped 10 basis points to 4.40%, while the 2-year yield declined 4 basis points to 2.73%.

According to the latest government bond issuance plan, New Zealand expects to issue NZ$35 billion in bonds for the fiscal year ending June 2026, representing a NZ$3 billion reduction from previous estimates.