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A review of things you need to know before you go home on Monday; property yields vanishing, construction boom coming, equities higher, swaps hold at record lows, NZD unchanged

A review of things you need to know before you go home on Monday; property yields vanishing, construction boom coming, equities higher, swaps hold at record lows, NZD unchanged

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

TODAY'S MORTGAGE RATE CHANGES
No changes to report today.

TODAY'S DEPOSIT RATE CHANGES
No rate changes here either.

YIELDS VANISHING IN PROPERTY
Latest Indicative Yield Report shows yields on residential investment property have been squeezed as investors bid up prices chasing capital gains.

CONSTRUCTION BOOM COMING
Economics consultancy Infometrics predicts a +39% increase in housing construction by 2018. They expect a big jump in high density housing once Auckland's Unitary Plan is finalised, which they say could push prices down by -11%.

SEEKING RETAIL INVESTORS TO TAKE OVER WHOLESALE DEBT
Wellington Airport is looking to issue $60 million unsecured, unsubordinated, fixed rate bonds to New Zealand retail and institutional investors in a retail bond offer. They say they will use these funds to buy-back part of its existing $150 million unsecured, unsubordinated medium term floating rate wholesale bonds due 1 August 2017 which are unlisted.

EQUITIES STRONGER
Equity prices are starting the week, basically up. All exchanges open so far today are up except Hong Kong which is down -0.2%. In fact, the NZX50 is leading this timezone, up +0.8% so far today.

SWAP RATES HOLD
Wholesale rates basically held today, up just +1 bps for terms 2 to 7 years. They are up +2 bps for 10 years. That flattened the rate curves further. NZ swap rates are here. The 90-day bank bill rate pipped down -1 bp to 2.30%.

NZ DOLLAR UNCHANGED
The NZD is currently at 69.8 USc, 93.5 AUc, and 63.7 euro cents. The TWI-5 is still at 74. These are unchanged levels from where markets ended last week. Check our real-time charts here.

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Daily exchange rates

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Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
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Source: RBNZ
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Source: RBNZ
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Source: RBNZ
Daily benchmark rate
Source: RBNZ
End of day UTC
Source: CoinDesk

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1 Comments

"Construction Boom Coming" - it is already here......

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