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

A review of things you need to know before you sign off on Tuesday; no retail rate changes but benchmark rates move up, TDs more popular, housing market soggy & good for buyers, swaps up, NZD down, NZD dips, & more

Economy / news
A review of things you need to know before you sign off on Tuesday; no retail rate changes but benchmark rates move up, TDs more popular, housing market soggy & good for buyers, swaps up, NZD down, NZD dips, & more

Here are the key things you need to know before you leave work today (or if you work from home, before you shutdown your laptop). Don't skip the bonds section below where there are significant shifts up today.

MORTGAGE RATE CHANGES
No changes to report today. All current mortgage rates are here. And note, you can compare mortgage offers with our unique calculator that takes into account other costs and cashback incentives, here.

TERM DEPOSIT/SAVINGS RATE CHANGES
No changes here today either. But we do have some new analysis on the term deposit sector here. All updated term deposit rates less than 1 year are here, for 1-5 years, they are here.

SOGGY END
The housing market ended winter on a soggy note and is heading into spring with high stock levels and declining asking prices, according to realestate.co.nz.

'GOOD TIME TO BUY'
And the latest ASB Housing Confidence survey report shows fewer people expect house prices will rise, with a net 9% expecting future price growth – down from 30% in summer. Nationwide, a net 20% think it's a good time to buy a house, with buyer sentiment strongest in Auckland.

EXTINCTION IMMINENT?
Updated RBNZ data shows there have been no coins minted now for two full years, no serious volumes minted for five years. That is likely the end, given there are still in excess of $600 mln (value) still "in circulation".

STABLE
We missed noting this yesterday, but S&P Global Ratings has affirmed the New Zealand sovereign rating at AA+, Stable.

NZX50 RETREATS
As at 3pm, the overall NZX50 index is down -0.8% today, and down -1.4% for the past 5 trading sessions. It is up +1.1% from six months ago. From a year ago it is now up +5.6%. Market heavyweight F&P Healthcare is down -0.1% so far today. a2 Milk, Auckland Airport, Mainfreight and Chorus declined today while SkyTV, Tourism Holdings, Scales, and Channel Infrastructure lead the gainers

BETTER THAN EXPECTED
As we suspected, the private China factory PMI by S&PGlobal (Rating Dog) came in much more positively that the official version, and expanded at a rate that beat estimates, even if it is modest. How sustainable that improvement is will be interesting to see because input price inflation rose but output prices fell for first time in 2026 so far.

A RECENT PULLBACK
Australian building consents were expected to fall in July and they did, and by about the expected amount, down -3.6% from June to remain up +9.0% from a year ago. House consents fell -4.2% but multi-unit consents held little-changed (-0.4%). Still, that leaves the multi-unit sector up almost +20% from a year ago. (Some of those are likely to have been Bathla developments in Western Sydney, so are unlikely to proceed now.)

HOUSE PRICES RETREAT
And staying in Australia, Cotality reported that house prices fell -0.9% in August from July, following a -1.2% decline in July. Overall, house prices are now -3.6% below their peak, although still +2.7% higher than a year earlier. The housing downturn has now spread across more capital cities and regional centers, and further policy tightening by the RBA points to tougher conditions ahead. Sydney and Melbourne again led the declines, falling -4.6% and -4.7%, respectively from this time last year, the only capital cities to now be lower on an annual basis

SWAP RATE RISE
Wholesale swap rates will likely be noticeably higher today on global influences. Keep an eye on our chart below which will record the final positions closer to 5pm. The 90 day bank bill rate was up +1 bp at 3.06% on Monday. Today, the Australian 10 year bond yield is up +8 bps to 5.16% and now back to 2011 levels. The China 10 year bond rate is unchanged at 1.69%. The Japanese 10 year bond is up +6 bps at 2.99% and a new 30 year high. The NZ Government 10 year bond rate is now at 4.83% and up +7 bps and back at May levels. (The RBNZ data is now 'prior day' with the Monday rate unchanged at 4.74%.) And the UST 10yr yield is now at 4.78%, and up +7 bps from this time yesterday, and now at the brief 2023.level, and prior to that at 2007 levels. Bessent's manipulation strategy isn't looking so good at present.

EQUITIES LOWER
The NZX50 is now down -0.8% from yesterday's close and giving up all of the prior gain. The ASX200 has opened down -0.3%. Tokyo has opened down -0.4%. The KOSPI has fallen -0.6% at its open today. Hong Kong has opened down -.1.0% while Shanghai is down -0.2% at its open. Singapore is down -0.8% in early Tuesday trade today. Wall Street ended lower with the S&P500 down -0.3% and the Nasdaq down -0.1%.

OIL PRICES UP AGAIN
American oil prices are up another +US$2 from this time yesterday on the Persian Gulf flare-up with the WTI benchmark is now just under US$87/bbl, while the international Brent price is now just over US$91/bbl and up +US$1. An exiting tanker was hit by three 'projectiles' today although no crew were harmed. It was close to the Omani coast but the fire may have come from anywhere.

CARBON PRICE UNCHANGED
There have been no trades reported so far today so the price is still at $51.50/NZU. See our daily chart tracker of the NZU price for carbon, courtesy of emsTradepoint.

GOLD LITTLE-CHANGED
In early Asian trade, gold is up +US$11/oz from this time yesterday, now at US$4440/oz. Silver is up +50 USc at US$66.50/oz.

NZD SOFTISH
The Kiwi dollar is down -10 bps from yesterday, now just on 59.1 USc. Against the Aussie we are down -20 bps at 82.4 AUc. Against the euro we also down -20 bps at 51.1 euro cents. This all means the TWI-5 is now just under 62.6 and downa bit more than -10 bps from yesterday at this time

BITCOIN FIRMISH
The bitcoin price is now at US$78,427 and up +1.2% from this time yesterday. Volatility has been modest, at just on +/- 1.1%.

HOW THE GLOBAL ECONOMIC FORCES AFFECT US
If you want to catch up on what happened last night, try our Economy Watch podcast, here.

Daily exchange rates

Select chart tabs

Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: CoinDesk

Daily swap rates

Select chart tabs

Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA

This soil moisture chart is animated here.

Keep abreast of upcoming events by following our Economic Calendar here ».

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.

23 Comments

Bond yields rising at an increasing rate whilst debt is at an all time high and also rising.  To top it off, oil prices are also also rising.  

How can this possibly not end up in a very serious collapse ?

Up
7

Yes Dr Y. And Japan’s benchmark 10-year JGB yield just hit 3% today - first time since 1996. 

And look at Aussie. Bond yields are currently surging while broad money growth is still off the hook.

Up
2

It will not....the unknown is when

Up
2

I think we're getting very close, possibly this month.

Up
1

Maybe...though there is much that needs it to continue and consequently all stops will be pulled to enable.

Up
2

You’re such a ‘doom gloom merchant’ Yvil - talking about serious collapses!! (tongue in cheek)

Perhaps you could give your own advice, that you used to give to others,  to yourself - which was that in the face of reckless stupidity and excess, people just need to have a positive attitude and everything will be fine (you might be right?)

Rising rates with high debt is just a mere flesh wound - we (US government debt - or NZ private debt vs GDP) can keep on fighting and everything will be fine and dandy! And if it’s not, well what can we individually do? It’s a bit like trying to fight climate change. Does the butterfly effect work or do a consensus of people truely want to set forth on a new, more responsible, way forward (but only after bearing the certain painful consequences of the stupidity created by the people before them - as far as I can see nobody want to take responsibility for anything, let alone experience economic/financial pain now so things can be better in the future - most still think they can have their cake and eat it to eg extremely high private debt to GDP and a prosperous country for future generations - it’s two faced cognitive gymnastics to the extreme). 

Up
5

Wow. We agree. Who saw that coming....

Up
1

Define serious? GFC level?

Up
1

IMO, yes

Up
2

Roy Morgan poll update 

TOP now 9.5%, NZF drop to 7.5%

https://www.roymorgan.com/findings/10321-nz-national-voting-intention-a…

Up
5

Luxon will be regretting his stupid comments of ruling out working with TOP.  How can our leaders be so dumb ?  Negotiation 101 would suggest that in a very tight race to form a government, you leave the door ajar to all options.

Up
9

Yep. Winstons comment today "experience does matter in politics" was spot on. 

Up
5

Perhaps Biden had too much 'experience'

Up
0

He will change his tune during the negotiation and decide he can work with them. 

I don't think he's dumb, he just wanted to avoid National voters jumping ship to TOP by pretending it was a vote for Labour. 

Up
4

Who would you want as king maker? A party with policies that have barely changed in almost a decade and are forward thinking and replicate what most prosperous nations are doing (or we did as a prosperous nation in the past)... or a populist flip flop party whose policy seems to be angrily yelling at anyone who disagrees with their latest whim and who appeals to the anti vaccine cooker crowd as much as possible?

Up
0

Unfortunately Air NZ is the 2nd-most owned asset on Sharesies. In their latest published quarterly index, Rocket Lab overtook Air New Zealand for first place. Air NZ had held the number-one position continuously since Sharesies began publishing the metric in 2023. 

Interesting to note that Smart Gold ETF and the energy companies are being snapped up. If you'd mentioned at the water cooler not so long ago that you were buying a gold ETF, you'd be be seen as madder than a box of frogs. 

https://assets.ctfassets.net/eg3voq9njjf7/S0puq6c5sLnRRwRq30ZJ1/ca7dd46af605e334848a2efe511f700b/Sharesies_Index_-_Jan-Mar_2026.pdf  

Up
2

This wouldn't happen in NZ, the grid owner wouldn't allow it. 

"Australia's biggest transmission company has been slapped down by the regulator over attempts to pass on a billion-dollar bill to consumers for a bungled high-voltage power line."

"Under Australia's energy laws, transmission companies are subject to regulation which guarantees their revenues — and the prices they can charge — under five-year deals."

https://www.abc.net.au/news/2026-09-01/regulator-rejects-bid-for-transgrid-bailout/107102136 

Up
0

The Telegraph reckons analysis signals that UK property can no longer be classed as an investment.

The average home in England is now worth less in real terms than it was 20 years ago as inflation and interest rates hammer the property market.

It's not a well-written article IMO. 

https://www.telegraph.co.uk/business/2026/08/30/houses-in-england-worth…

Up
4

Amazing what a period of no growth can do to an investment. Auckland prices are almost exactly where they were 6 years ago. Back then I thought our house was a great investment. Now I'd say it's been pretty average. Wouldn't be surprised if I consider it a terrible investment in another 6 years time. 

Up
2

Your homes value has be an absolute wealth destroyer since 2020.

It has had to rise ÷29% since 2020, just to maintain your CPI purchasing power.

Abysmal .  "Best time to sell any investment property was yeaterday"  - will be the mantra for the next decade or two!!!

This sucka is going to crash further. 

Gold, silver and energy will be the only forward winners. Dollars of any denomination will lose value.

Up
3

Perhaps the realisation that no matter what someone says a house is worth, the house is still just the house 20years later. Somewhere for someone to live and enjoy life.

Up
0

A good tip, and a very good article.  We are over here from the UK, having just sold, and yes, the market over there is bad, and given the economic backdrop, set to become worse.  I know three who have sold - all for around 15% below 2022/2023 price highs.  As the article notes, they key issue was/is the financial crisis, and the lack of real income growth since.  In the UK real GDP per capita is up circa 8% since 2008 - an appalling rise.  That compares with 25% per capita increases in EACH of the decades - 70s, 80s, 90s.

I cannot see how matters will improve.  The Western world worked post 1945, then we embraced globalisation, financialisation,debt driven growth, and we are where we are.

The only positive thing - NZ's problems are little compared to those of the UK, where the combination of economic and social troubles are a real concern.  If the UK had economic problems and a stable society, then a way out could be seen, if it had social troubles and a strong economy, then a way out could be seen, but it has vast social and economic troubles.  It does not look good. Ask most Brits in business about matters, and they offer only a sense of hanging on in quiet desperation.

Up
0