Here are the key things you need to know before you leave work today.
CHANGES IN MORTGAGE RATES
BNZ has withdrawn its unique seven-year fixed mortgage loan offer. A non-existent demand is at the origin of the movement.
CHANGES IN THE TERM DEPOSIT RATE
Kiwibank and Heartland Bank today raised some rates on term deposits. More here.
QUIETER, WITH LESS SUCCESS
Auckland real estate agent Barfoot & Thompson saw his drop in auction success rate just 50% of last week’s activity as housing market activity slumps from its very active pre-Easter levels.
Diana Clement find there are many relatively common cases where the new denial of interest deductibility will hit first-time buyers hard, and she finds confusion over the definition of “new construction”.
OPENING OF THE ASB BOND OFFER
ASB has now provided More details of its wholesale fundraiser. It will be a five-year bond, and research $ 100 million “with unlimited oversubscriptions.” The indicative interest rate will be the five-year swap rate (currently around 1.04%) plus a spread of between 0.55% and 0.60% per annum. So about 1.61%, which is actually less than what they are offering retail investors for a five-year term deposit (1.75% per annum).
BIG RED EMBARRASSÉ
Westpac warned today, the Group’s six-month banking result was weak, with losses and write-downs in a set of six issues. This included a loss of A $ 113 million on the sale of Westpac Pacific. The bottom line was although they had a gain of + A $ 288 million from its initial investment in Coinbase, and another + A $ 18 million from its stake in BNPL Zip Co.
South Korea’s preliminaries Q1-2021 GDP have shown that their economy is now above its pre-pandemic size. The recovery gained momentum, aided by strong exports and a pickup in domestic demand. Despite the expected headwinds (such as the return of the virus), South Korea is on track to be the first in this region to return to normal monetary policy.
After hitting US $ 1,781 in New York earlier today, it fell back to US $ 1,776 in early Australian and Asian exchanges.
EQUITIES SLIP AGAIN
The S & P500 ended today’s session slightly higher + 0.2%. Shanghai it opened -0.5% lower and Hong Kong is -0.2% lower when they opened. The very large Tokyo market opened down -0.3% at the start of trading. The ASX200 was down -0.4% at the start of the afternoon while the NZX50 Capital index was stable at the end of the session.
SWAPS & BONDS FIRM
We do not yet have today’s closing swap rates. If there are any significant movements today, we will note them here later when we have the data. They are probably little changed. The 90-day bank invoice rate is unchanged at 0.35%. The benchmark ten-year Australian government rate is up +2 basis points from yesterday at 1.69%. The 10-year Chinese government bond was up + 3bp to 3.21%. And the ten-year New Zealand government is up +3bp to 1.62% and now above the level of the RBNZ’s previous fixation at 1.60% (+4bp). The ten-year US government stands at 1.58%, similar to Friday’s level.
NZ SWEETER DOLLAR AFTER THE FIRM PERIOD
The Kiwi dollar is now at 72.1 USc after rising yesterday. Against the Australian, we are softer at 92.6 AUc. Against the euro, we are firmer at 59.8 euro cents. This means the TWI-5 is up slightly at 73.8, although it’s a bit lower than where we started this morning.
The price of bitcoin is now at US $ 53,932 and + 9.0% higher than this time on Friday. Basically he’s back to where he was for most of the week before the last one. But he was very unstable between the two. Over the past 24 hours, volatility has been less extreme at +/- 2.4%.
This soil moisture graph is animated here.
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