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
Nothing changed today.
TERM DEPOSIT RATE CHANGES
BNZ raised some TD rates for most fixed terms 6 months to 5 years. But not for a one year term which stayed at 4.50%. Importantly however, they raised their 6 month rate to 4.00%, the first major bank to do so for that term.
ONE MONTH'S DATA INTERUPTS A TREND
The REINZ House Price Index shows prices increased in October but that doesn't mean it's a trend. But the October rise brought an end to almost a year of steady declines. But picking where they'll go from here is not for the faint-hearted.
COMPARING MORTGAGE FEES
In the fourth of a series of articles on bank fees, Matt Skinner looks at the mortgage fees the major banks charge, a useful reference record.
LOWER GEARING
New borrowers' debt-to-income ratios are still falling fast. The latest quarterly Reserve Bank figures show new mortgage borrowers are gearing themselves up notably less than has been seen in recent years.
DAIRY PRICES RISE
Dairy prices at the overnight auction rose +2.4% in USD terms but were -3.1% lower in NZD terms. Analysts saw some of this gain as buyers filling up on the lower prices over the past six weeks. China demand was light however. Local analysts looked past the NZD fall and have held their farmgate payout forecasts for 2022/2023.
IMPROVING AUDIT QUALITY
The FMA’s Audit Quality Monitoring Report for 2021/22, says audit firms have made improvements since previous reviews but audit quality remains inconsistent between firms. Auditors have better documented their judgements about accounting estimates and how they applied professional scepticism, continuing the trend from previous years.
A HESITANT START TO Q4
Japanese machinery orders fell -3.3% in September from a month ago, ending the quarter on quite a weak note and contributing to their GDP slip. However, they are expecting a strong rebound in Q4 and the October data kicks that off. However, the sub-sector machine tool order levels in October didn't show an increase from September, so the official forecast effect is yet to show up.
LOG IN ISSUE
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SWAP RATES SETTLE SLIGHTLY LOWER
Wholesale swap rates may be slightly softer today, but the real action comes near the close. Our chart will record the final positions. The 90 day bank bill rate is down -1 bp at 4.15%. The Australian 10 year bond yield is now at 3.70% and down -4 bps. The China 10 year bond rate has settled to 2.83% and down -2 bps. The NZ Government 10 year bond rate is now at 4.23%, and down another -7 bps and now below the RBNZ fix for the NZGB 10 year which down a rather sharp -14 bps at 4.19%. The UST 10 year is now at 3.78% and down another -8 bps from this time yesterday.
EQUITY RISES HALTED BY MISSILE
The S&P500 ended its Tuesday trade up +0.9% and making back all of Monday's dip. Tokyo has opened down -0.8%. Hong Kong has opened down -0.9%. Shanghai has opened down -0.3%. The 'Russian' missile landing in Poland has raised risk aversion suddenly. The ASX200 is down -0.5% in early afternoon trade. The NZX50 is up another +0.2% late in the Wednesday session.
GOLD STAYS FIRM
In early Asian trade, gold is at US$1775/oz and up +US$5 from this time yesterday.
NZD FIRMS
The Kiwi dollar is +½c higher than this time yesterday at 61.5 USc. Against the AUD we are unchanged at 91.1 AUc. Against the euro we firm at 59.4 euro cents. That all means our TWI-5 is now at 70.3 and up +40 bps from this time yesterday.
BITCOIN FIRMS
Bitcoin is now at US$16,810 and up +1.5% from this time yesterday. Volatility over the past 24 hours has been modest also at just over +/- 1.5%.
Daily exchange rates
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