Here are the key things you need to know before you leave work today (or if you’re already working from home, before shutting down your laptop).
MORTGAGE RATE CHANGES
SBS Bank raised its floating mortgage rate by +50 basis points to 6.79%, with the change for existing customers taking effect on September 5, 2022. A summary of all changes is here.
CHANGES IN TERM DEPOSIT RATES
Heretaunga Building Society has increased all of its TD rates. SBS Bank has also increased the rates on its savings accounts.
The RBNZ reported (S20) that the net interest margin (NIM) of the banking sector increased from 2.05% in March to 2.17% in June, its largest quarterly increase since 2011. More details on the banks that benefited from this rising margin will be released tomorrow
next week when their dashboard data is published.
DISAPPEARANCE OF INVESTOR DEMAND
Excluding January (and the pandemic affected April 2020), new loans to residential housing investors (C32) was the lowest in July of any other month since the RBNZ began reporting data in August 2014. More here.
END OF THE HOUSING SHORTAGE?
Kiwibank economists now see property prices falling -13% by the end of the year, followed by a “slow” recovery. They also see housing shortage ‘disappears’ over the next 12 months.
METAVERSE FOR INVESTORS
For investors, we see BetaShares spear the Metaverse ETF on the ASX this month. The market opportunity to “bring the metaverse to life” has been estimated to reach nearly $800 billion in annual revenue by 2024 according to Bloomberg. Variations of these new funds have RIPPL reports in our Investment fund resource.
THE RETURN OF NUCLEAR POWER?
Trapped by current oil and gas imports, Japan is about to order the construction of a new nuclear power plant to consolidate some energy security.
EVEN HIGHER SWAP RATES
Wholesale swap rates are likely even higher today, still influenced by the global influences we noted yesterday. There is still steepening of the curve. The 90-day bank bill rate was up by +1 bp at 3.39%. The Australian 10-year bond yield is now at 3.65% and is up another +4 basis points since this time yesterday. The Chinese 10-year bond rate is at 2.65% and little changed and is still near its lowest since May 2020. The New Zealand 10-year government bond rate is now at 3.85% and rising +5 basis points from this time yesterday, and now lower than the RBNZ’s prior fix for this bond which was up +7 basis points to 3.87%. The 10-year UST is now at 3.04% and up +2 basis points from the same time yesterday.
On Wall Street, the S&P500 fell -0.2% today, unable to gain any traction. Tokyo is down -0.5% in Wednesday trading so far. Hong Kong is still down -0.9% and Shanghai is down -0.7% in early trade today. The ASX200 is up +0.7% and the NZX50 is flat late in the session.
In early Asian trading, gold was up +US$9 at US$1,746/oz.
The Kiwi dollar is unchanged from this time yesterday, still at 61.9 USc. Against the AUD, we are also unchanged at AUc 89.8. Against the euro, we are changing little at 62.2 euro cents. This means that our TWI-5 is now at 71 and also little changed.
Bitcoin is virtually unchanged from this time yesterday at US$21,310. Volatility over the past 24 hours has been modest at just +/-1.8%.
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