Here are the key things you need to know before you leave work today.
TODAY'S RATE CHANGES
RaboDirect upped its 1 mth and 3 mth term deposit rates, both by +25 bps to 3.00% and 3.50% respectively. Also note that we incorrectly reported yesterday that SBS Bank had ended its 3 year mortgage special. That is not correct; that 'special' is still running. This is worth noting because it is at a market leading rate of 5.95%.
QUITTING SOME NZ PROPERTY
The AMP Property Portfolio is to be sold to the Public Sector Pension Investment Board, a Canadian institutional investor (subject to OIO approvals). That means the Cullen Fund's 29+% stake is now cashed up.
WORLD CLASS?
Andrew Lark is joining the Mighty River Power board. He was most recently as Chief Marketing & Online Officer of Australia’s largest bank, Commonwealth Bank. He was also previously Chief Marketing Officer at Dell. And he was the inaugural winner of the 'World-class New Zealander' award.
MORE KIWIS COMING HOME?
The Aussie economy adds only 16,000 jobs in June, maintaining the trend of employment growing at only half the pace of working age population growth. The participation rate is basically unchanged, pushing the jobless rate back to 6.0%, the cycle high. Data for May was revised 'worse'. The RBA may be wondering whether their settings are right.
GOOD DEMAND AT LOW RATES
There was solid interest in the latest Inflation Linked NZGB bond tender but just like the May issue a majority of bids were unsuccessful; weighted average yield 2.83% (2.80% last time). The coverage ratio was 2.6x.
PMI DIPS
Further moderation in May saw the NZ seasonally-adjusted PMI dip for second month running, although things are still expanding. However, at 52.7 it is an 18-month low. Not so encouraging are falling new orders and rising inventories, which has BNZ's economists wondering about the extent of growth in the pipeline.
TOURISM STILL GROWING
Year on year growth came in at 8.5% for the year to May, down from the previous month's (April) y-o-y growth of nearly 15%. The data released today showed solid growth in North Island and Domestic guest nights. Both South Island and International Guest nights were softer.
STRONG SUPPORT I
The MTF securised car loan bonds that we noted earlier in the week have now been priced. The offer was heavily over-subscribed with lots of offshore interest. The majority of it was the AAA-rated tranche at that went at 3mth BKBM +120 bps, or about 4.74%.
STRONG SUPPORT II
Kiwi Income Property Trust has successfully place a $100 mln bond offer at 6.15%. In fact they also accepted another $25 mln in oversubscriptions, so they got away $125 mln.
WHOLESALE RATES
Wholesale swap rates fell by -2 bp across all terms today following the New York benchmark falls overnight. However the 90 day bank bill rate was unchanged at 3.66%.
OUR CURRENCY
The NZ dollar moved higher yet again today. It is at 88.2 USc, at 93.8 AUc. The TWI is now at 81.9 and yet another new post-float record.
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