Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No more changes to report today.
TERM DEPOSIT RATE CHANGES
Co-op Bank cut their 6 month TD rate, but raised all rates from 9 months and longer.
LOWER PRICES, BUT 2021/22 PAYOUT FORECASTS UNCHANGED
Today's dairy auction brought lower prices, and since the bit +15% run up in early March, these overall price gains have now been halved. Today's price falls reflect the strong end to the production season and buyer hesitancy at higher costs. However analysts say even with this correction, prices remain consistent with 2021/22 farmgate milk price forecast at about $8.00/kg.
AN ANNUAL REBATE
The Co-operative Bank is returning $2.5 mln to its 128,000 customers via its annual rebate scheme. (To save you the calculation, that is an average of $19.53 each.)
A TIGHTER MARGIN
Kiwi Property Group (KPG, #19) has today revised the indicative margin down for its seven-year fixed-rate senior secured green bond offer to 1.25%-1.35% per annum. (It was 1.35%-1.50% pa.)The minimum interest rate remains unchanged at 2.85% pa.
A SECOND VACCINE
Regulatory authority Medsafe has granted provisional approval of the Janssen COVID-19 vaccine for individuals 18 years of age and older. New Zealand secured 2 million doses of the Janssen vaccine through an advance purchase agreement last year. The Janssen vaccine has previously received emergency or provisional approval in Canada, USA and Australia. As a single dose vaccine, it may be useful in hard to reach locations or emergencies, or for those who cannot get the Pfizer vaccine.
RBNZ TO CONSULT ON MONEY & CASH ISSUES
The Reserve Bank has confirmed it'll release a series of consultation papers between August and November on money and cash issues. The first consultation will introduce and seek feedback on the broad concepts of money and cash stewardship, and outline specific topics to be covered in the rest of the series. Subsequent papers will look at the potential for a Central Bank Digital Currency (CBDC) to work alongside cash as government-backed money, issues arising from new electronic money forms including crypto assets such as Bitcoin, and stable coins, such as proposed by a Facebook-led consortium, and how the cash system might need to change to continue to meet the needs of users.
MORE CONFIDENT
The number of people holding shares rises and the number of people with term deposits drops as an FMA commissioned survey shows an increase in investor confidence. A survey by Chartered Accountants Australia and New Zealand (CA ANZ) also found rising investor confidence in the local capital markets.
ANZ THE LAST TO DIP IN
Yesterday we noted that another $500 mln was drawn under the RBNZ's Funding for Lending program. They got these funds at a cost of 0.25% (the OCR rate). Today we can reveal the bank taking these funds was ANZ.
HEARTLAND UPS HARMONEY STAKE
Heartland Bank has increased its stake in Harmoney to 10.1% from 8.44%.
GROWTH SLOWING
QV says house price growth has slowed but it's too early to know if the market has turned. They also say it's soon to know the extent to which the change is seasonal or can be attributed to policy changes
MORE NORMAL
Because we had previously noted very high wholesale electricity prices, we also now need to note today's current pricing is much more 'normal' at about $150/MWhr. Driving these lower levels is good hydro lake inflows and levels, and quite low demand.
LOCKDOWN-LITE EXTENSION
NSW has extended its Greater Sydney's lockdown for seven more days after the state recorded 27 new COVID-19 cases, taking it out to July 17.
GOLD UP AGAIN
Compared to where we were at this time yesterday, the gold price is up +US$5/oz to US$1797/oz in early Asian trading.
EQUITIES MIXED
The S&P500 staged something of a recovery at the end of Wall Street trading earlier today, ending down just -0.2%. In Tokyo, they have started today's session quite negative, down a full -1.0%. Hong Kong has started today down -0.7%. Shanghai has opened up +0.3% however. The ASX200 is trading +0.7% higher in early afternoon trade. The NZX50 Capital Index is down a minor -0.1% in late trade.
SWAP & BONDS FLATTEN FURTHER
We don't have today's closing swap rates yet. If there are significant changes again today, we will update this item. They are probably little-changed at the 1 and 2 yr end and holding the recent hikes. But they will no doubt be down sharply at the long end. The 90 day bank bill rate is up +1 bp at 0.34%. The Australian Govt ten year benchmark rate is down -8 bps at just on 1.38%. The China Govt ten year bond is unchanged at 3.10%. The New Zealand Govt ten year is also down -8 bps so far today at 1.65% and just above the earlier RBNZ fix of 1.64% (-5 bps). The US Govt ten year is down a very sharp -9 bps from this time yesterday to 1.36%.
NZ DOLLAR SOFT
The Kiwi dollar has retrenched today, down -70 bps and now just under 70.1 USc, unable to hold yesterday's rise as commodity currencies slip in unison. Against the Aussie we are unchanged at 93.6 AUc. Against the euro we are softer at 59.3 euro cents. That means the TWI-5 is at 72.8.
BITCOIN HOLDS
The bitcoin price is now at US$34,257 and up a relatively minor +1.1% from where we were at this time yesterday. Volatility in the past 24 hours has been moderate at +/- 2.3%.
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