Here are the key things you need to know before you leave work today.
FONTERRA RAISES MILK PRICE AGAIN
But the 35c/kgMS rise to $8.65 is still much less the derived price by the Milk Price Manual ($9.35). It is the third rise they have announced for the current season which is now fast winding down.
MIGRATION SURGE
Migrants keep pouring into New Zealand, especially from the UK, China and India. Net inward migration is now at a 10 year high. The overseas visitors keep coming too.
TRADE SURPLUS GROWS
Dairy products to China have driven our overseas trade into a surplus. And that is despite a high exchange rate.
GOVT BOND TENDER HEAVILY OVERSUBSCRIBED
Despite fears the latest Govt bond issue may be a victim of the Kauri and LGFA issues, today's Govt bond tender received over $1 bln worth of bids (cover ratio was 5.05x). The weighted average yield of the successful bids was approximately 4.29% and this was around 30 basis points lower than the last tender in December 2013.
HIGH LVR LENDING WEAKENS AGAIN
The latest data for January shows that banks only lend 4.8% of the 10% they could have lent for over 80% LVR loans. By my calculations since October, banks have undershot by more than $500 million. That is a lot of first home buyers who missed out.
AUCKLAND & WELLINGTON AFFORDABILITY
We have expanded the reporting of our affordability measures to reveal the impacts within both the Auckland and Wellington urban areas.
WHOLESALE RATES
Swap rates fell sharply today across all terms following New York markets. Rates were down 2bps to 5 bps over the curve and imposing even more flattening. In fact 10yr swaps are now below 5%. The 90 day bank bill rates edged back up a tick today are now at 2.96%, with a full 25 bps OCR rise still fully priced in.
OUR CURRENCY RISES
The NZD rose on the day in response to the dairy payout, migration surge, and trade surplus - but not as much as you might have suspected. It's back over 83 USc and 92.7 AUc. The TWI is still at 78.2.
SOIL MOISTURE
The current soil moisture levels look a little concerning ...
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