sign up log in
Want to go ad-free? Find out how, here.

A review of things you need to know before you go home on Monday; higher mortgage rates, cash-back returns, ASB switches TD special, new low-rate credit card, FBI moves markets, swaps up again, NZD resilient

A review of things you need to know before you go home on Monday; higher mortgage rates, cash-back returns, ASB switches TD special, new low-rate credit card, FBI moves markets, swaps up again, NZD resilient

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

MORTGAGE RATE CHANGES
SBS Bank has found it couldn't hold its market-leading 4.15% 2 year rate, raising it to 4.29% today. It also raised its 18 month rate marginally, while cutting its 3 year rate by -20 bps to 4.35%, which is market-leading. Meanwhile, TSB Bank now has the lowest 2 year rate at 4.19%. But interestingly they have reprised the cash incentive, offering cash-back of 0.5% of the loan amount up to a maximum of $2,000 - in an offer due to expire on December 16.

DEPOSIT RATE CHANGES
ASB today switched its 3.60% term deposit special from a 7 month term to a 10 month term. At the sale time, it has dropped its 18 month rate by -15 bps to 3.50%.

NEW CREDIT CARD OPTION
The Co-operative Bank today launched its 'Fair Rate Mastercard'. It's annual fee is $20, and it uniquely offers the same rate for purchases as Cash Advances, a low 12.95%. We compared all low rate bank credit cards here.

MARKET MOVER
In the US, the FBI says it has ended its investigation into the emails which threw Hillary Clinton's presidential campaign into turmoil, and has concluded that no charges are warranted. This news moved markets today.

NZX50 TAKES OFF
Following the FBI decision, equity markets have risen strongly in our time zone. Tokyo is up +1.25%, the ASX is up +1%, and the NZX50 is up more than +2%. This follows a week of steady declines.

NO STRESS
The latest bankruptcy and 'no asset procedure' filing levels show there is no rise at all in the levels of credit stress that results in these insolvencies. They remain at very low levels, even below the absolute levels we had before the GFC.

LOWER RATING SOON
Fitch Ratings said today ... "A one notch downgrade of Kiwibank's IDR [issuer default credit rating] is probable once the guarantee provided by NZ Post is withdrawn." This rating is currently AA. The NZ Post guarantee is being withdrawn because the two new shareholders NZSF and ACC won't be making a similar promise for the SOE bank.

WHOLESALE RATES HIGHER
The rise and rise of wholesale swap rates hasn't stopped yet. These rates are up another +3 to +5 bps today except for the 1 year which is up only +1 bp. The 1-5 rate curve is now +42 bps, its steepest since the first week of 2016. The 10 year is now at 2.93%, its highest since the first week of June. That represents a +55 bps rise in nine weeks since the 2.38% low was reached. The 90-day bank bill is down -1 bp at 2.12%.

NZ DOLLAR SHOWS RESILIENCE
With the second "clearing" of candidate Clinton by the FBI over their email investigation, the USD has risen against almost all currencies. But the rise against the NZD has been minor. Against the Kiwi it is now at 73.2 USc which is where we were at this time on Friday. On the cross rates, it is trading at 95.4 AUc, and is at 66.1 euro cents. The TWI-5 is up at 77 after trading higher pre- the Clinton/FBI announcement. Check our real-time charts here.

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

Daily exchange rates

Select chart tabs

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

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

1 Comments

The probable Kiwibank downgrade is huge news. I'm not sure why this hasn't been reported more openly and widely.

Up
0