A review of things you need to know before you go home on Monday; many mortgage rate changes, job confidence falls, bigger trade surplus, high interest-only lending, swaps and NZD both hold their ground

Here are the key things you need to know before you leave work today.

TODAY'S MORTGAGE RATE CHANGES
Sovereign announced that they are raising their floating mortgage rate by +10 bps to 5.75, effective July 7. SBS Bank cut its 6 month fixed rate to 4.50% and raised its 1 year rate from 4.10% to 4.25%. And Kiwibank reduced its 1 year fixed rate to 4.19% which, along with HSBC, is now the lowest fixed mortgage rate in the market. They increased their 2 year rate to 4.29% at the same time.

TODAY'S DEPOSIT RATE CHANGES
BNZ cut -25 bps off its one month term deposit rate, which takes it down to 0.50% and matching its main rivals.

ABOUT FACE
Employment confidence fell in the June quarter, reversing gains made earlier in the year. Workers perceptions of their own job security have deteriorated particularly sharply, driving a decline in Employment Expectations component of the Westpac's Index. Confidence fell in most regions this quarter with the biggest declines in Gisborne and the Hawke's Bay.

BETTER THAN EXPECTED XVIII
The good hard data keeps coming. NZ posted a larger than expected trade surplus in May as the strength in other exports continues to offset dairy export weakness. All up, NZ’s diverse export mix paints a resilient export picture.

NEW INTEREST-ONLY LENDING DATA
New data out today shows that $3 bln of lending in May was interest-only (which includes revolving credit arrangements). That makes it a concerning 41% of all lending. This type of lending has been about 40% since data has been collected by the regulator starting in January. The same data shows 50% of that interest-only was for investors, the same amount for owners-occupiers.

OUTSIZED RISKS
Banks made lending commitments in May of $7.3 bln and more than a quarter of these were to Auckland "investors". Another 29% were to other Auckland buyers. So all up, bank lending to the rest of the country (including investors) was only 46% of all lending. The skew to Auckland is now at dangerous levels.

WHAT - ME WORRY?
Equity markets are almost all in positive territory today. The NZX50 is up almost +0.5% as is the ASX200. The Singapore market is up a similar amount, Shanghai is up almost +1% and Tokyo is up +1.4% today. Only Hong Kong has not come to the recovery party. But the bears are still out: gold is up another +$10/oz in Asian trading, now at US$1,326/oz.

AUCKLAND COUNCIL FIRST LOCAL BREXIT VICTIM
Auckland Council today decided to defer its planned retail bond issue announced last week given the uncertain market conditions following the United Kingdom’s referendum on European Union membership.

SWAP RATES HOLD
Local swap rates started the day up +1 bps but as the day has progressed they are now down -1 bps across the board. The sharp falls we saw on Friday have held. NZ swap rates are here. The 90-day bank bill rate is down -1 bp, now at 2.34%.

NZ DOLLAR LITTLE CHANGED
Despite all the international turmoil, none of it has rubbed off on the Kiwi dollar yet. The NZD is still at levels it was at this time on Friday, at 70.5 USc, at 95.3 AUc, and 64.1 euro cents. The TWI-5 is now just over 74.3. Check our real-time charts here.

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