A review of things you need to know before you go home on Thursday; TSB faces court over AML, NZGB bond yields rise, Melbourne to lock down for 7 days, swaps up, NZD firm, & more

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
Heretaunga Building society raised their one and two year fixed rates.

TERM DEPOSIT RATE CHANGES
Heretaunga Building Society also raised all their term deposit and savings rates.

GETTING SERIOUS
The RBNZ has filed a High Court statement of claim against TSB for 'acknowledged breaches' of the Anti-Money Laundering and Countering Financing of Terrorism Act. It is the first court action the RBNZ has taken against a bank. TSB isn't accused of money laundering, rather having weak protections, and worse, failing to fix them properly after the RBNZ asked them to.

RISING YIELDS
There was another NZGB bond tender today with four tenors offered. The May 2026 $100 mln attracted $325 mln in bids and resulted in an average yield of 1.13% pa which is higher than the prior 1.06%. The May 2031 $100 mln attracted $305 mln in bids and went for 1.88%, also a rise from last time. The May 2033 $100 mln attracted $463 mln and went for a yield of 2.10% compared to 2.11% last time. There was also an inflation-indexed September 2040 bond offer of $50 mln attracting $70 mln in bids. This yield is 1.00% plus CPI, and well above the prior 0.87% plus CPI.

ROCKET PROFIT
New Zealand headquartered maker of breathing equipment Fisher & Paykel Healthcare (FPH and #1) has seen extraordinary demand for its products as Covid has swept the globe. Its profits are up +82% to $524 mln tax-paid.

A GOOD YEAR
Stride Property (SPG #32) also released annual results today of $132 mln on a portfolio of $1.1 bln.

RETIREMENT PROPERTY
The listed aged care sector (a property play) includes four companies in the NZX50 representing 8% of the overall index capitalisation (Arvida #29, Ryman #7, Oceania #34 and Summerset #13). Last week it fell -2.8% even though the overall NZX50 index rose +0.7%. But since Sepetmebr 2020 this sector has gained +9.6% while the overall rise was +4.9% since then.

LOCKDOWN AGAIN
The State of Victoria will go into a seven day lockdown at midnight local time as pandemic infections continue spreading across the state. The B1.617.1 variant is moving through their community. Victorians will only be permitted to leave their home to shop for groceries, authorised work, limited exercise, caregiving, and to get vaccinated. And they won't be able to roam more than 5 kms from their house. Clearly the Trans-Tasman flight bubble suspension with Melbourne will be extended by New Zealand.

MAKING HAY
Profits at large China’s industrial companies grew at a continuing fast pace in April, despite high commodity prices and weaker performance in the consumer goods sector. While the year-on-year comparisons distort the usual benchmarks, compared with April 2019 those profits were 49% higher and operating revenues were +33% higher.

GOLD SLIPS
The gold price is now at US$1896 and down +US$9 in early Asian trading from this time yesterday. The NY market closed at US$1897/oz and London closed at US$1900.

EQUITIES DUMPED IN NZ
The S&P500 ended its Wall Street session today gaining a minor +0.2%. The very large Tokyo market has opened its session down -0.7%, Hong Kong is down -0.3%, but Shanghai is up another +0.5% early in their session. The ASX200 is up a minor +0.2% early afternoon while the NZX50 Capital Index is down by -1.2%. Locally FPH, Ryman, Rakon, Restaurant Brands, Chorus, Summerset and ATM are all taking big hits.

SWAP & BONDS YIELDS RISE
We don't have today's closing swap rates yet after yesterday's jump. If there are significant changes again today, we will update this item. The 90 day bank bill rate is down -1 bp at 0.33%. The Australian Govt ten year benchmark rate is down another -2 bps since this time yesterday at 1.60%. The China Govt ten year bond is holding at 3.09%. But the New Zealand Govt ten year is up another +2 bps at 1.90% and now above the 1.88% in the earlier RBNZ fix (+12 bps). The US Govt ten year is unchanged at 1.58% as global bond markets stay in a risk-off tone.

NZ DOLLAR STAYS UP
The Kiwi dollar has stayed high at 72.9 USc. Against the Aussie we are up seriously to 94.3 AUc. Against the euro we are firm at 59.8 euro cents. That means the TWI-5 is up at 74.5 and holding yesterday's rise.

BITCOIN FALLS TODAY
The bitcoin price is now at US$37,450 and down -4.6% from this time yesterday. Volatility in the past 24 hours is still very high at +/- 4.8%.

This soil moisture chart is animated here.

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