Late Change NZD/USD 0.8528 -0.0094 NZD/AUD 0.7981 -0.0033 NZD/JPY 67.585 +0.98 April 2013 Bond 3.255% +1.5 bps May 2021 Bond 4.735% -1.5 bps 10-Year U.S. Spread +211 bps -4.0 bps 90-Day Bank Bill 2.91% -6.0 bps WELLINGTON (Dow Jones)--The New Zealand dollar was trading sharply lower late Thursday, after Japanese authorities intervened in the foreign currency markets, buoying both the euro and the U.S. dollar against a host of regional currencies. Dealers said Japan's Ministry of Finance bought dollars around the Y78.35 level through both Japanese and foreign banks, injecting roughly Y500 billion into the market. The intervention wasn't unexpected, but the timing took some by surprise as it came at the outset of a scheduled two-day policy meeting by the Bank of Japan. Westpac currency trader Imre Speizer said the New Zealand dollar initially treaded water on the news, but fell sharply after officials confirmed the intervention. However, the slide "may only have an impact until U.S. equity markets open tonight," Speizer added. Domestic second-quarter employment data released earlier in the day had little impact on the market as it came in within expectations and didn't alter the view the Reserve Bank of New Zealand would hike rates shortly. The market is now focused on U.S. non-farm payrolls data due Friday. New Zealand government bond curve flattened, while the 90-day bank bill fell as market expectations of the steepness of the RBNZ rate cycle moderated due to concerns about the international economic recover, said a local bond trader. The New Zealand government bond tender was particularly well bid with NZ$560 million offered for the NZ$100 million worth of April 2023 bonds on offer. The trader said demand for longer maturity bonds was strong due to global uncertainties. -By Lucy Craymer, Dow Jones Newswires; 64-4-471-5990; lucy.craymer@dowjones.com

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