Here are the key things you need to know before you leave work today.
THERE WERE RATE MOVES TODAY
Westpac raised its floating rates mortgage rates and some key savings and term deposit rates.
GDP GROWS +3.8% in MARCH QUARTER
The rise was broadly in line with expectations, juiced somewhat with upward revisions to prior quarters. Construction and agricultural exports are driving growth, but consumers remain the laggard, suggesting the housing and migration boom of the mid-2000s may not be representative of this cycle. The RBNZ will feel these results reinforce its OCR rising track.
STRONG GOVT BOND TENDER
Latest bond tender of NZ$300 mln received bids for NZ$1.112 bln with an average weighted yield of 4.23% which was up from the previous 4.11%.
FARM SALES STRONG, LIFESTYLE BLOCK SALES AVERAGE
Farm sales in May reached 212 which was 18% higher than May 2013 and 47% higher than May 2012. There is higher demand for all types of farms except forestry blocks and grazing units. The same can't be said for lifestyle block sales because they were down 7% year-on-year.
LYTTLETON QUAKE RECOVERY FAILING
Years after the earthquakes and after many aftershocks, it is clear that progress rebuilding the port suburb of Lyttleton is struggling. The Government has announced a new focus on getting this moving there.
ANOTHER POLITICAL POLL OUT
Today’s Roy Morgan Poll shows a fall in support for National (49.5%, down 3%) but National are still well ahead of a potential Labour/Greens alliance (40%, up 2%). This survey was done between June 2 and 15. It also found that confidence in the government remained very high.
WHOLESALE RATES
Wholesale swap rates gave up 6 or 7 bps right across the whole curve today, except for the one year which was down only 2 bps. The 90 day bank bill rate held at 3.58%.
OUR CURRENCY
The NZ dollar was a 'rock star' gainer today ahead of the GDP data, and it only fell back slightly after the announcement. The NZD is now at 87.2 USc, the Aussie is at 92.7 and the TWI is at 81.1.
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