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A review of things you need to know before you go home on Tuesday; bulk buying benefits, China gloom worse, broader Red Zone offers, yield indicator for renter investments, the impact of aging

A review of things you need to know before you go home on Tuesday; bulk buying benefits, China gloom worse, broader Red Zone offers, yield indicator for renter investments, the impact of aging

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

TODAY'S MORTGAGE RATE CHANGES
Update: The Cooperative bank thi afternoon announced changes to their mortgage rates, all reductions and all effectoive tomorrow. Their six month fixed rate is reduced to 5.80% matching the main banks. Their 3 year fixed rate is to be 5.49%, a -10 bps cut, and their 4 and 5 year fixed rates are both to be 5.69%, down -6 and -10 ps respectively. None of the new rates are market leading.

TODAY'S DEPOSIT RATE CHANGES
There are no term deposit rate changes to report today either.

BULK BUYER
The Government is reviewing is exposure to insurance and "risk financing". It currently has a very disjointed approach to the area, and today it appointed five industry providers to help it build a more co-ordinated approach for government agencies. It is trying to get the benefits of its huge buying power. “In the event of a natural disaster like an earthquake, for example, the new solutions delivered by these providers will enable government agencies to respond and recover more quickly, because agencies will be better prepared and co-ordinated in terms of the funding mechanisms that will apply.”

CHINA GLOOM WORSENS
Business sentiment in China is the worst it has been since 2009 according to the latest survey out today. And that survey was taken after the latest relaxation in reserve ratios. The MNI China Business Sentiment Indicator, a gauge of current business sentiment, fell for the fourth consecutive month to 48.8 in April from 52.2 in March, leaving confidence in contractionary territory for the first time since the financial crisis.

NEW PROCESS; MORE MONEY?
There will be a new process for Christchurch Red Zone offers, following a court challenge and related decision. If the process results in a larger revised Crown offer from that which has expired, then those owners who accepted the original offer will be eligible for a top up of their payments.

RELYING ON CAPITAL GAINS
The national residential property yield indicator was out today. They continue to slide in Auckland to very low rates on a gross basis. It is no easy job finding an investment property in the Queen City as property prices rise faster than rents, forcing yields down. Net yields will be even worse.

OLDER - BUT RICHER OR POORER?
A comprehensive Report out today details the impact of an aging population will have on our economy and social structures. The number of people over 65 is predicted to double in the next 20 years to around 1.2 million, placing increased demands on our health system and services. At the same time, spending by over-65s is expected to rise from $14 billion in 2011 to around $65 billion in 2051. The workforce is getting older. Currently, 22% of over-65s have some form of paid work, just over 5%t of the total workforce. By 2033, it will have risen to 31% of the age group.

WHOLESALE RATES
Wholesale swap rates have risen today +1 bp across the whole curve. The 90 day bank bill rate is unchanged at 3.60%.

NZ DOLLAR LOWER
The NZ dollar is lower today. As of late this afternoon it is at 76.4 USc, 99.4 AUc, 71.2 euro cents, and the TWI is at 81.6. Check our real-time charts here.

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Source: CoinDesk

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3 Comments

Sydney buoyed by Chinese buyers. - how much more is Auckland given Australia's restrictions on existing houses?
Www.Smh.com.au/business/property

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Ex-actly.

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And and and. Overs 65s will double in number. And the rental generation will show up in the numbers as well . Dropping off the retirement income cliff, no assets at all, means they won't have a show of providing housing for themselves.

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