Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
Chinese bank ICBC today changed its 2 year fixed rate to 3.99%, a -20 bps reduction. And China Contruction Bank has announced some very low rate offers. For two years fixed their rate is 3.75%, and for three years their new fixed rate is 3.85%.
TERM DEPOSIT RATE CHANGES
ICIB has reduced some interest rate offers today as well, taking -5 bps from rates of one year and shorter, and higher amounts in the -15 to -25 range from longer terms
HOUSING STOCK UPDATE
Stats NZ released its quarterly update of households and tenure showing that there are almost 1.9 mln private dwellings in the country as at March 2019, a rise of +28,400 in a year. This does seem about right given they reported that +34,200 new dwelling consents were issued in the same period, and two years ago the number was +30,600 (given that it takes about two years for a consent to be built). This suggests that 93% of consents actually get built. The home ownership rate suggested in this data is 62.2%.
MARKET UPDATE
Both the ASX and NZX are down about -0.8% today as negative sentiment weighs on investors. Tokyo has opened flat, while in Hong Kong and China it is a public holiday (Ancestors Day) so markets are closed.
LOCAL SWAP RATES STABLE
Local swap rates are little changed today, but there is a sign of softness at the longer durations. The UST 10yr rate is firmer at 2.53%, a rise of another +1 bp since this time yesterday. Their 2-10 curve is stable at +18 bps while their negative 1-5 curve is virtually unchanged at -8 bps. The Aussie Govt 10yr is at 1.90% (down -1 bp today), the China Govt 10yr is at 3.27% and up +1 bp, while the New Zealand Govt 10yr is at 2.02% and down -1 bp so far today. The 90 day bank bill rate is unchanged at 1.82%.
NZ DOLLAR FALTERS
The NZ dollar has fallen -½c since this time yesterday and now at 67.5 USc. Against the Aussie we are lower too at 94.9 AUc, and at 60.2 euro cents. The TWI-5 is down at 72.2.
BITCOIN EASES
Bitcoin has slipped back from this time yesterday by -2.4% at US$4.937. Bitcoin is tracked in the chart below.
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Daily exchange rates
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4 Comments
wo out of three Melbourne apartments sold off the plan during the past eight years have made no price gains, or have lost money upon resale, despite a property boom and record immigration, according to analysis by BIS Oxford Economics.
In Brisbane about half are selling at a loss, or no profit, over the same period, while for Sydney it is about one in four since 2015
Ouch
https://www.afr.com/business/banking-and-finance/off-the-plan-apartment…
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