Here are the key things you need to know before you leave work today.
TERM DEPOSIT RATE CHANGES
Nothing to report so far today.
WINNERS & LOSERS IN THE CARD GAME
The stunting of credit cards continues, and the presumption is that buy-now, pay-later schemes are the cause. September credit card balances are virtually unchanged from a year ago, and that is the slowest growth in more than three years. A year ago, this category was growing at more than +5%. Now nothing. Use of these cards is growing (+3.7% pa), but use of them for debt isn't (down -2.5%). You need such a card for BNPL schemes but you don't need them for the interest-bearing transactions. Visa and Mastercard won't mind - they clip the ticket with the merchants based on the transactions (and then shelter their earnings in tax-free offshore havens). It is the banks who are losing out with on the debt side.
CAR SERVICING ADDED TO BUY NOW, PAY LATER SERVICE
Buy now, pay later service provider Laybuy says customers can now service their cars using buy now, pay later. Laybuy says 41 automotive merchants have signed up with it to offer the service. It says people can get their service completed immediately and spread the cost over six equal weekly payment installments.
In China, house price growth fell again in September according to official data out today. There are reports of heavy discounting by developers and those effects won't come through in the offical data for while yet.
Japanese merchandise exports fell more than -5% in September, a bit more than expected but less that the -8% they fell in August. It's only a little thing, but the outlier here is New Zealand. Japan's exports to us were up +19% and imports from us down -14%. That put the trade between us in September into balance. For the half year to September, New Zealand ran a sizable merchandise trade surplus with Japan.
SWAP RATES KEEP ON RISING
Wholesale swap rates are still rising and steepening. The two year is up another +2 bps today, the five year is up +3 bps, and the ten year is up another +4 bps. The 90-day bank bill rate dipped -1 bp to 1.04%. Australian swap rates are lower today by -1 bp. The Aussie Govt 10yr is up +3 bps to 1.14%. The China Govt 10yr is up +3 bps at 3.21% and that is a big move in the context of recent stability. The NZ Govt 10 yr is also up +2 bps at 1.26%. The UST 10yr yield is unchanged at 1.75%.
NZ DOLLAR FIRM
The Kiwi dollar is up further today and just on 64 USc. Against the Aussie we are also firmer at 93.23 AU cents. Against the euro we are up at 57.4 euro cents. That means the TWI-5 has risen to 68.9 and a new monthly high.
Bitcoin is up today at US$8,212 and a gain on the day. The bitcoin price is charted in the currency set below.
This chart is animated here.