A review of things you need to know before you sign off on Tuesday; all big banks have now pushed through their floating rate increases, no sign of mortgage stress, auction rooms quiet, swaps rise & steepen, NZD stable, & more

Here are the key things you need to know before you leave work today (or if you already work from home, before you shutdown your laptop).

MORTGAGE RATE CHANGES
BNZ raised its floating rate by +40 bps, and will apply the new 6.79% rate to existing clients from September 9, 2022. Westpac raised their by +46 bps to 6.85% and existing clients will get the change on September 7, 2022. That completes the floating rate changes by the main banks. Most challenger banks are yet to make theirs. WBS cut their 2-year fixed rate.

TERM DEPOSIT RATE CHANGES
No changes to term deposit rates today. But there are changes to bonus saver rates which we have summarised here.

QUIET AS
It was very quiet in residential auction rooms around the country last week, with exactly a third selling under the hammer among the auctions we monitored.

NO SIGNS OF STRESS YET
Meanwhile, the RBNZ says households are coping, at least for now, with higher mortgage rates. They say there's no sign that higher servicing costs are as yet translating into substantive increases in the level of arrears or stress in commercial bank home lending portfolios.

BILLIONS TO GO
The RBNZ says it expects the FLP (Funding for Lending Program), through which banks have already borrowed $12.7 bln at the OCR rate, will be further utilised before it closes off in December. About $8.5 bln is still available to be borrowed for up to three years under than program, so it could top out at just over $21 bln.

EXPANDING SLOWER, OR NOT AT ALL
The 'flash' Australia manufacturing PMI fell to 54.5 in August 2022 from 55.7 in July, hitting the lowest level in a year but marking the 27th consecutive month of expansion within their factory sector. The same report suggests their services sector is contracting in August..

DITTO, JAPAN
It was the same story in Japan where the same survey found a factory sector still expanding but at a much reduced pace in August - and a services sector that moved down into a small contraction.

SWAP RATES HIGHER YET AGAIN
Wholesale swap rates are probably higher again today, still on those global influences we noted yesterday. There is curve steepening still going on. The 90 day bank bill rate is unchanged however at 3.38%. The Australian 10 year bond yield is now at 3.61% and up +4 bps since this morning. The China 10 year bond rate is at 2.65% and little-changed and still near its lowest since May 2020. The NZ Government 10 year bond rate is now at 3.80% and up another +10 bps from this time yesterday, and now matching the earlier RBNZ fix for this bond which was up +14 bps to 3.80%. The UST 10 year is now at 3.02% and up +4 bps from this time yesterday.

EQUITIES FALLING
On Wall Street, the S&P500 fell -2.1% today, mainly on tech company fall-backs. Tokyo is down -1.2% in Tuesday trade so far. Hong Kong is down -0.9% and Shanghai is down -0.3% in early trade today. The ASX200 is down -0.5%, and the NZX50 is down -1.1% in late trade. We have been updating the NZX50 company profiles that have June balance dates and have issued their financial statements, so our summaries are up to date. About 10 so far.

GOLD SLIPS
In early Asian trade, gold fallen -US$10 to US$1,737/oz.

NZD A TAD FIRMER
The Kiwi dollar is unchanged from this time yesterday at 61.9 USc. Against the AUD we are also unchanged at 89.8 AUc. Against the euro we are up +½c at 62.3 euro cents. That means our TWI-5 is now at 71 and a tad firmer than this morning's open.

BITCOIN IN MINOR SLIP
Bitcoin is virtually unchanged from this time yesterday at US$21,305 and down -0.6%. Volatility over the past 24 hours has been modest at just on +/- 1.5%.

This soil moisture chart is animated here.

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