Trent Boult (6-32) and Tim Southee (4-25) ripped through the tourists at Eden Park, taking just 20.4 overs to end a pitiful innings.
Joe Root’s men were an astonishing 27-9 before Craig Overton’s unbeaten 33 got them up to England’s sixth-worst Test score of all time.
Kane Williamson showed England how it is done in the first day-night Test to be played in New Zealand, the captain’s 91 not out taking his side on to 175-3 at stumps.
Head coach Bayliss was bemused by his side’s shortcomings with the bat after watching a record-equalling five England players fall without scoring.
“We got caught behind the crease to fairly full balls, which allows the ball to swing. Then we were nowhere, we were a little bit like rabbits in the headlights.” he told Sky Sports.
“They bowled extremely well, but we battled extremely poorly.
“I think it must have been a mental thing. Our feet looked like they had lead in them today and we didn’t make too many right decisions with our footwork.”
England played just the two warm-up games ahead of the first Test, but Bayliss said it was difficult finding a balancing act between giving players time off after the tour of Australia and getting time in the middle.
He added: “I’m not sure if there is any right answer [with managing schedules]. If they play everything, they are probably mentally fatigued. Certainly, the guys have had a long four or five months.
“Most of these guys have been home for two or three weeks. One or two of the Test players for a little longer than that. It is a difficult one, but what do you when you’ve got so many games on.
“I’m not sure anyone has gone the answer. We’ve tried to give them a rest when it’s possible. There is no cricket on in England over Christmas, so what do you do?”
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