Here are the key things you need to know before you leave work today.
JOHN KEY TOYS WITH TAX CUTS
It's election time; the government is hinting there may be room for some tax relief, without slowing the growing surpluses.
LGFA ISSUE WELL SUPPORTED
The LGFA received bids of $447 million for the $200 million of debt on offer today.
RETAIL TRADE GOOD
The March quarter retails sales growth data was softer than for the December quarter, but that belied some interesting detail. These numbers were dragged down by supermarket sales and fuel retailing. Sectors like hardware, electrical goods and restaurants all had very healthy growth, as did those for furniture and cars.
KIWIBANK JUNK PRICED
Kiwibank's $100 million unsecured subordinated capital note issue has been priced today and they will yield 6.61% for the first five years. They are unguaranteed, but count as capital for the bank in their capital adequacy assessments. These Notes are rated below investment grade.
NON-RESIDENT BOND HOLDINGS
Non-residents held their holding of NZ Government securities in April at 61.3%, according to the latest data from the RBNZ monitoring. This is the lowest level since 2012.
RETAIL RATE CHANGES
The Co-operative Bank dropped its fixed 3 year home loan rate to 6.25%, the level most banks are now adopting. At the same time, they raised their online saver by 25 bps to 3.25% 3.15%.
MORTGAGE MARKET FAILS TO FIRE
The level of 'new' home loans being approved by financial institutions is very uninspiring. The 13 weeks to May 9 was 10.6% lower than the equivalent period a year ago. Values are down 9.4%. The fizz in this market has gone flat.
MORE CURRENCY TRADING
Currency trading in the NZD in April was up to NZ$12.5 billion per day. That's a lot of moolah, NZ$250 billion for the 20 day month and only marginally less than for March when there were no public holidays. 36% is local, 64% is cross-border. Rises were seen for all classes, spot, forwards and swaps.
WHOLESALE RATES DOWN TODAY
Swap rates were up down the curve today by 2 bps, down 3 bps for 10 yrs. The 90 day bank bill rate was unchanged at 3.41%.
OUR CURRENCY
The NZ dollar slipped slightly today against a firming US dollar. The NZD is now at 86.4 USc, 92.1 AUc and the TWI is just above 80.2.
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