Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
TSB Bank has dropped its 18 month home loan rate to 5.90% from 6.05%, a cut of -15 bps. The bank with the lowest carded 18 month rate is SBS Bank at 5.74%. Also, ASB and BankDirect have made a raft of changes late in the day which you can see here.
TODAY'S DEPOSIT RATE CHANGES
No changes today.
NATIONAL RIDING HIGH
Today’s Roy Morgan Poll shows National on 49.5%, up 6% since early October. Support for Key’s Coalition partners is down slightly with the Maori Party on 1% down 1%, Act NZ on 0.5% unchanged and United Future 0%, down 0.5%. Support for the Labour Party is up slightly to 24% (up 1.5%) and down for the other two opposition parties: Greens 14.5% (down 3%) and NZ First 6.5% (down 0.5%).
LESS FOREIGN HOLDINGS
Non-resident holding of NZ Govt bonds fell slightly in October to 64.8% from 65.9% the previous month. Actually, a 1% fall in one month is actually quite a big movement.
LOWER PRICES, EASIER ON THE WALLET
The fall in crude oil prices is starting to show up at the pump with more falls today. Pump prices are down to $2.12 and with some of the supermarket discount deals effective prices below $2/litre are probably not far away. (We have already heard of a $1.98/litre price at Pak-n-Save.) Lower fuel costs will keep inflation restrained and some may worry about the 'deflation' angle, but in fact take-home pay will be getting a real boost in the run-up to the holiday season.
BACK IN FAVOUR
The trading volumes in the NZ dollar were at their highest level last month since March 2009. More than $315 bln was traded in October. The big gains came from currency swap trades.
WHOLESALE RATES
Domestic swap rates were lower across the curve giving up all yesterdays gains, down -1 bp to -3 bps, and this is despite the rises in New York last night. The 90 day bank bill rate is unchanged at 3.67%.
OUR CURRENCY HOLDS
Check our real-time charts here. The NZ dollar drifted down this afternoon but not by very much. Against the US dollar it is now at 78.6 USc, at 90.4 AUc, and the TWI is at 78.0.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
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4 Comments
Non-resident holding of NZ Govt bonds fell slightly in October to 64.8% from 65.9% the previous month. Actually, a 1% fall in one month is actually quite a big movement.
I wonder if foreign investors were clearing the decks for the new linker or just got tired of the currency play at the margin?
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