A review of things you need to know before you go home Friday; HNZC cuts home loan rate, UDC back with restrictions, NZGB yields down, GMT gets the max, greenhouse gas target on track, swaps and NZD slip

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

MORTGAGE RATE CHANGES
Housing NZ has cut their one year fixed rate from 4.99% to 4.85%.

DEPOSIT RATE CHANGES
There are no changes to report. However, UDC has limited their offers to holders of a Secured Term Investment as at 25 May 2017 where that Secured Term Investment is scheduled to mature on or before the special resolution is voted on and the holders wish to reinvest some or all of the maturing Secured Term Investment with us. These restrictions will apply until the June meeting of their debenture holders.

LOWER DEMAND, LOWER YIELD
Demand for the NZGB 20yr bond tender of NZ$150 mln received bids of NZ$349 mln at a coverage ratio of 2.3x; average weighted yield of 3.33%. This is -22 bps below the previous comparable tender just one month ago and this yield has fallen for five consecutive months.

BOOTS FILLED
Meanwhile, Goodman Property Trust's retail bond offer reached its maximum offer level of $100 mln. It is rated BBB+ and was priced today with a yield of 4.54%.

STABLE
Moody's has today changed to stable from negative the outlook on the ratings for New Zealand subsidiaries of Chinese banks. The action affects Bank of China (New Zealand), China Construction Bank (New Zealand), and Industrial and Commercial Bank of China (New Zealand). The affirmation reflects the change to stable on the outlook for their parents' ratings which "takes into account the potential risks in these banks' lending books, their restrained loan growth relative to their rated Chinese peers, stable capitalisation, and the modest decline in their profitability. The downgrade of China's sovereign rating has not had an impact on their credit ratings which continue to benefit from a very high level of government support. All three New Zealand subsidiary banks benefit from a guarantee from their respective parent."

'ON TARGET'
The latest Greenhouse Gas Inventory shows gross emissions have remained stable since 2003 and declined in 2015 as New Zealand is becoming more carbon efficient. Between 1990 and 2015 the emissions intensity of the economy decreased by 35.9%. New Zealand’s net emissions under the UNFCCC were 56.4 Mt CO2-e in 2015. New Zealand is projected to meet its 2020 target with a surplus of 89.7 mln units.

FIXING AN UNINTENDED CONSEQUENCE
There is to be a review of the low fixed-charge electricity tariff. Some of the poorest people are cross-subsidising wealthier households because of the "low fixed charge" system is delivering the opposite of what was intended when they were introduced in 2004. The review comes after the IEA highlighted a change was needed (see pg 18).

UNHAPPY MEDIA RIVALS
NZME and Fairfax have decided to appeal the Commerce Commission's decision to block their merger.

A NATION OF MIGRANTS
2.5% of the Aussie population was born in New Zealand, according to new data released today. That is over 600,000 people, and is behind the 1.2 mln born in the UK. But it is greater than the 526,000 born in China and the 468,000 born in India. More than 28% of their population was born overseas. The same data release showed that there is only tiny interstate migration going on there.

PROPERTY RULES (RULED)
"Real estate services" represented 3.7% of Australian employment, its sales and service income grew +6.2% making it one its fastest growing sectors, and profits grew +14%. This data however is for the 2015 year, the latest available and released today.

WHOLESALE RATES DOWN, FLATTER
Local swaps rates have fallen a little and flattened further today. The two year is down -1 bp, the five year is down -2 bps, and the ten year is also down -2 bps. The 90 day bank bill rate is unchanged at 1.97%.

NZ DOLLAR SLIPS
The NZD has slipped today and is now at 70.1 USc. On the crosses we are at 94.4 AUc as the Aussie has noticeably weakened, and at 62.7 euro cents. The TWI-5 is still at 74.6.

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