New Zealand retained the upper hand despite losing three cheap wickets after opting against making England follow on in the deciding third cricket Test in Auckland.

The Black Caps ended day three on Sunday on 35-3 in their second innings, leaving them with a 274-run lead.

They had wrested firm control when, having posted 443 in their first innings, they reduced England’s reply to 204.

Trent Boult was their stand-out performer, the left-armer returning career-best first-class figures of 6-68 in his 13th Test.

He was well supported by fellow paceman Tim Southee, who took 3-44, with both being able to get movement in the air.

But the home side ceded a chunk of their advantage after skipper Brendon McCullum decided to bat again.

Hamish Rutherford was quickly back in pavilion with a three-ball duck after he fended a Stuart Broad delivery to Ian Bell in the gully.

Jimmy Anderson then bowled Kane Williamson for 1, before Broad trapped Ross Taylor leg-before for 3 to leave the Black Caps reeling at 8-3.

First innings century-maker Peter Fulton, unbeaten on 14, and Dean Brownlie, 13 not out, steadied the ship by surviving the remaining 15 overs.

On a day of twists and turns at Eden Park, the Black Caps mopped up the England tail after taking the new ball just before tea when the tourists were 173-6.

Boult removed Broad to start the slide.

Broad’s 16 runs came from four consecutive Boult deliveries, the last a six over mid-wicket.

But he drove the next ball to Rutherford at cover to leave England at 200-7.

Boult followed up by removing Steven Finn (0) and Anderson (4), both caught behind, in the same over.

Southee closed the innings when he bowled Joe Root for 45.

Earlier, wicketkeeper Matt Prior had led an England fight-back with an aggressive 73.

Prior put on a 101-run stand with Root before he cut a Neil Wagner delivery to Rutherford at point.

The pair had come together when England, starting the day at 50-2, were reduced to 72-5.

Prior was the dominant partner, although he had a let-off on 24.

He and Root had advanced England to the traditionally superstitious total of 111 when he attempted to drive a Southee delivery.

Instead, he edged a low chance that Brownlie at second slip got both hands to but spilled.

In the day’s opening session, Southee grabbed two wickets and Boult one, all lbw, to swing the pendulum New Zealand’s way.

Southee claimed the scalps of Nick Compton (13) and Ian Bell (17), while Boult removed Jonny Bairstow (3).

The series is tied at 0-0 after the first two Tests were both affected by rain.