SBS raises 5 year mortgage rate to 7.85%

SBS raises 5 year mortgage rate to 7.85%
SBS raised its five year mortgage rate this morning by 25 basis points (bps) to 7.85%. This follows similar moves by ANZ and National yesterday, who raised three, four and five year mortgage rates by as much as 35 bps. The US government is now borrowing US$100 billion per week, which is pushing up long term rates internationally. Over the last month, NZ five year swap rates have risen 36 bps to 5.10%, while five year government bond yields have climbed 44 bps to 4.77%. The Budget released yesterday forecast government bond issues here of as much as NZ$200 million a week for the next ten years, potentially pushing up interest rates here too. See our mortgage rates table here.

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