Here's my summary of the key news overnight in 90 seconds at 9 am, including news of sharp local wholesale swap rate rises.
But first, American retail sales rose less than expected in May and first-time applications for jobless benefits increased last week, but the data did little to alter views their economy is regaining steam.
Those retail sales gained only +0.3%. While that was below the +0.6% rise expected by the markets, April sales were revised higher helping to keep growth forecasts intact.
The oil price climbed to an eight-month high and New York stocks slumped as violence escalated across Iraq. The gold price zoomed higher and is now at US$1,274/oz.
In Britain, the regulator is getting new powers to cap loan-to-income ratios applied by banks for mortgage lending.
In China, new data out for 2013 shows that at the end of the year, more than one in five 'homes' were vacant - almost a staggering 50 million units. It shows the breadth of their housing frenzy. No supply problem there, just rampant speculation.
Also, new data out overnight confirmed that China's so-called mini-stimulus is currently in full swing.
UST 10 yr yields fell overnight on the weak US data and deteriorating Iraqi situation. But it was actually a minor fall to about 2.62%.
However, NZ swap rates rose sharply yesterday, and one and two year rates are suddenly at their highest since July 2010. Our mortgage rates are about to ratchet painfully higher in response. Yesterdays hikes re-established the long up trend that began in mid 2012.
On the exchange rate the NZD has also risen again overnight - and quite sharply as well - following the RBNZ decision. It starts today at 86.8 USc, at 92.2 AUc and the TWI is at 80.8 and up 100 bps in a day.
If you want to catch up with all the changes from yesterday we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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