sign up log in
Want to go ad-free? Find out how, here.

A review of things you need to know before you go home on Thursday; RaboDirect cuts, GDP beats forecasts, NZGBs in hot demand, Tokyo sinks, swaps fall and flatten, NZD rises

A review of things you need to know before you go home on Thursday; RaboDirect cuts, GDP beats forecasts, NZGBs in hot demand, Tokyo sinks, swaps fall and flatten, NZD rises

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

TODAY'S MORTGAGE RATE CHANGES
No changes today.

TODAY'S DEPOSIT RATE CHANGES
RaboDirect reduced its 1 month TD to 2.05% from 2.30%. They also cut their RaboSaver to 1.75%.

CONSTRUCTION HOT, EXPORTS NOT
The New Zealand economy expanded at a pace of +2.8% pa in the first quarter of 2016 which was slightly stronger than the RBNZ’s forecast of +2.7% and beating most economists forecasts. Strong growth in the construction sector, combined with a steady expansion in health care services were the main drivers over the quarter. The NZD rose on the news. This data came a day after our current account deficit for the same period also came in better than forecast. Together they reduce any pressure the RBNZ may be feeling to cut rates, pretty much confirming the perspectives they offered at the MPS earlier this month.

FILLING THEIR BOOTS
Investors can't get enough of the NZGB 2020 maturity nominal bond. Today's tender was oversubscribed 4.5 times. Today's average weighted yield was close to 2.09%. Five tenders ago (the last one in 2015) that yield was 2.87%. At this rate, the next one will see the yield likely dip below 2%.

DECELERATION?
In Australia, it is becoming clear that their car sales market has passed its peak.

LESS CHANCE OF AN RBA CUT
And staying in Australia, their employment data was pretty steady. This is being seen as easing the pressure on the RBA to cut rates there.

TOKYO EQUITIES SINK
Equity markets in Australia and New Zealand are higher today, but lower in Tokyo, Hong Kong and level-pegging in Shanghai. The drop in Japan is notable at almost -2% on the day - so far.

SWAP RATES LOWER & FLATTER
Even further wholesale rate falls today, down between -1 and -4 bps across the curve. The 2-10 curve is now at +48 bps. The 1-5 curve is just +15 bps. NZ swap rates are here. The 90-day bank bill rate is unchanged today at 2.34%.

NZ DOLLAR RISES
The NZD rose on the good GDP growth data and the indication the trend is likely to continue for a while yet. Is now at 70.8 USc, at 95.7 AUc, and 62.8 euro cents. The TWI-5 is now at 74.2. Check our real-time charts here.

You can now see an animation of this chart. Click on it, or click here.

Daily exchange rates

Select chart tabs

Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
End of day UTC
Source: CoinDesk

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

8 Comments

Investors can't get enough of the NZGB 2020 maturity nominal bond. Today's tender was oversubscribed 4.5 times. Today's average weighted yield was close to 2.09%.

Lower than last week's 98 day TBill tender priced at 2.098%.

Up
0

The Nikkei is seriously tanking, but JPY is charging against all currencies. A negative yielding asset is outperforming most other mainstream assets (except of NZ property of course). These are truly mysterious times.

Up
0

Equity markets in Australia and New Zealand are higher today, but lower in Tokyo, Hong Kong and level-pegging in Shanghai. The drop in Japan is notable at almost -2% on the day - so far.

Yes, the wheels are falling off as dislocation risk exercises restraint upon the “invisible hand of the market”.

Buying by the BOJ has helped boost premiums on J-REITs, which manage rental properties such as apartments, offices and malls, to 62 percent as of June 8, meaning investors would pay almost two-thirds more than the appraised value of properties they own, according to S&P Global Market Intelligence estimates. That gap makes J-REITs outliers compared with similar securities around the world, and suggests that the BOJ’s stimulus is stoking extreme price dislocations in this market. Read more

Up
0

Down nearly 1200 points in 5 days.

https://in.finance.yahoo.com/q/bc?s=%5EN225&t=5d&l=on&z=l&q=l&c=

Time for another 'blood transfusion'? Or perhaps a 'kickstart'.

Up
0

When you start looking at P12M and see the Nilkkei 225 down 30%, it gets more interesting.

Up
0

I picked this last week, now I am changing my mind to no more FED rises this year
http://www.cnbc.com/2016/06/15/fed-leaves-rates-unchanged-in-june-meeti…

Up
0

You are correct sharetrader.

https://www.youtube.com/watch?v=LiuaTyYn_58

Up
0