Here are the key things you need to know before you leave work today.
HNZC RAISES HOME LOAN RATES
The SOE has raised its variable rate the full 25 bps to 6.00%, its one year rate is up 35 bps to 5.85%, and its three year rate is up 15 bps to 6.55%.
TIGHT NZGS LINKER RESULT
Today's inflation-linked Government bond tender was interesting today because only 4 of the 54 bidders won any supply, a very low spread of winners (or losers, if you like). The winners accepted inflation plus 2.8%, down from 3.0% last time.
HOUSE PRICE RISES SLOW
QV says annual house price growth has slowed to 8.4% from 8.8% in past month; average price edged up to $468,400; Auckland prices were up 13.9%.
FOOD SECTOR DRIVING NZ GROWTH
Our food and beverage industry is well positioned for substantial growth, with exports on track to double in value in the next 15 years to US$40 billion, according to reports released today.
AUST JOBS REPORT TEPID
Australian employment report today was quite different to the NZ one yesterday. Unemployment there was steady at 5.8% (compared with ours at 6.0%), but falling their participation rate covered for some very tepid jobs growth. Their participation rate is 64.7% compared with ours at 69.3%. That is a big difference.
MISERY INDEX FAVOURS NZ
The misery index is CPI plus unemployment. For NZ that is 7.7%, for Australia it is 9.1% (its highest level since 2003), a gain in the advantage for NZ over the last quarter.
WHOLESALE RATES FLATTEN AGAIN
Swap rates were down again today, but the biggest falls were in the long end. Ten years fell 5 bps, 3 to 7 years fell 4 bps, and 2 yrs fell 2 bps. That is actually another significant set of moves down. The 2-5 curve is now less than 0.5%, the lowest in some time. The 90 day bank bill rate was up today to 3.32%.
OUR CURRENCY
The NZ dollar fell today. It didn't do much overnight - the offshore market didn't rate the Wheeler comments - but there are down moves following the Aussie jobs report. The NZD is now at 86.6 USc, 92.4 AUc and the TWI is still above 80 at 80.2.
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