A review of things you need to know before you go home on Thursday; ANZ does a good thing, NZGBs in high demand, huge commissions, job ads up, sentiment eased, swap rates jump, NZD holds

Here are the key things you need to know before you leave work today.

TODAY'S MORTGAGE RATE CHANGES
There are no changes to report today, so far.

TODAY'S DEPOSIT RATE CHANGES
No changes here either.

KUDOS TO A BANK
But ANZ did announce some very worthwhile changes to how much it will charge for currency transfers to Samoa, Tonga and Vanuatu. In addition to the exchange rate (which usually includes a generous spread, especially for smaller amounts), they have capped their fee at $7 per transaction - so long as you use their online platform. They have also said there will be no fee for the receiver in those countries. Good change ANZ.

THE WEALTH EFFECT
Westpac's Regional Roundup Report included this comment. "We expect house price growth of around 10.5% across New Zealand in 2016, with gains widespread across the regions except Canterbury. Rising house prices are generating a “wealth effect”, whereby property owners tend to spend some of their capital gain. This will buoy activity in many regions of New Zealand. However, we caution that this dynamic cannot be sustained forever, especially as much as the increase in spending is by increasing household debt." They say this is largely a consequence of low interest rates. They also say this is in addition to booming tourism and construction in most regions.

LOW RATES, HOT DEMAND
The latest Government bond nominal tender #571 for 2020s attracted five times the demand than was offered even though the average weighted accepted yield steady at a low 2.20%. Five times demand is pretty outstanding but it actually is the lowest level we have seen for this tender series since November 2015.

BIG BIKKIES
We published a report today that shows the real estate industry earned commissions exceeding $1.6 bln in the last year. Our new Housing Market Activity Report also suggests agents in Auckland may face a leaner winter this year.

CONSUMER NZ SURVEY SHOWS CONCERNS OVER BANK PROFITS
Consumer NZ says its latest bank satisfaction survey suggests 82% of New Zealanders believe the profits banks make mean they're overcharging their customers. Asked how their bank could improve customer satisfaction ratings, offering lower fees and charges was the top option picked by respondents. The survey also shows customers of NZ owned banks were more likely to be satisfied they were getting a good deal with 83% of TSB Bank customers and 65% of The Co-operative Bank’s very satisfied their bank’s fees were reasonable. At Kiwibank 45% of customers were also very satisfied on this measure.

Consumer NZ said as a group, the locally owned banks outperformed the Australian-owned ANZ, ASB, BNZ and Westpac with 67% of NZ owned banks' customers very satisfied with their bank versus 52% of the Australian owned banks' customers. 

"WHEN, NOT IF"
Jobs ads lifted for a third consecutive month in April (seasonally adjusted) in the latest ANZ series, and they appear to have an accelerating upward trend. This data suggests that our labour market remains fairly strong. It is a question of when, not if, this flows into an acceleration in wage growth.

SLOWER TEMPO, GOOD RYTHYM
Consumer sentiment eased in May, though it remains quite positive. Buoyant sentiment remains a good sign for spending trends and the economy says ANZ.

LOWER PARTICIPATION
Australia’s unemployment rate fell slightly last month, mainly due to lower participation in the workforce amid political uncertainty before their July 2 election. The number of people employed grew by 10,800 in April versus 26,100 in March, according to the Australian Bureau of Statistics, less than economist’s median estimate of a 12,000 rise.

SWAP RATES RISE STRONGLY
Taking its cue from the strong benchmark rises on Wall Street early today, local wholesale interest swap rates rose in a steepening trend by +4 to +7 bps across the curve. NZ swap rates are here. The 90-day bank bill rate is also up, by +2 bps, to 2.37%.

NZ DOLLAR ADJUSTS
Our currency fell against the USD as the greenback made gains following the reaction to the US Fed minutes. The Kiwi dollar is now at 67.4 USc, at 93.4 AUc, and 60 euro cents. The TWI-5 is now at 71.4. Check our real-time charts here.

You can now see an animation of this chart. Click on it, or click here.