By Raiko Shareef
A much quieter day for NZ interest rates yesterday, after the flurry of activity on Wednesday.
The short end of the curve was effectively unchanged, while the longer-end drifted lower in yield by 2 bps.
The 2-year swap closed at 4.14%
Offshore, US bond yields were of a mind to drift lower, even before headlines broke of a Malaysian Airline jet shot down over Ukraine
That news saw the US 10-year bond rate shunted below 2.50% in quick order.
The 10-year is currently 7 bps lower for the day at 2.45%, just 3 bps shy of its 2014 closing low of 2.44%.
Daily swap rates
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4 Comments
NZ, the National party & HSCB will no longer be able to keep pretending that NZ has a Rockstar economy that is entirely fire walled from terrorism, a global depression and major geopolitical troubles.
All western countries are running near zero interest rates with major economies still QE ing.
NZ and NZ banks Z is likely to be forced to reduce interest rates regardless of Auckland house prices. Unless NZ wants a major confidence collapse.
Russia is going to have a major effect on the global economy as it continues to supply weapons to various terrorist groups in the Middle East and Eastern Europe.
At the moment the current US president is disinterested in taking his geopolitical responsibities seriously, so we are seeing more trouble spot break out.
Our economy needs to be able to operate during war and global recessions without the conventional suppression of growth. We will not be totally insulated regardless of our distance.
Dobby is ratty ever since he had to relinguish his role in the Harry Potter films , and go back to the humdrum existence of running Russia and the Ukraine into the ground ...
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