A review of things you need to know before you go home Tuesday; Co-op Bank changes rates, affordability improves, cost of risk falls, WMP prices firm, Limmer wins SFF job, swaps slip, NZD up

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

MORTGAGE RATE CHANGES
The Co-operative Bank has cut -6 bps from their one year fixed rate to 4.49%.

DEPOSIT RATE CHANGES
The Co-operative Bank has added +5 bps to their 9 month term deposit rate, taking it to 3.50%.

AFFORDABILITY IMPROVES
The latest October data for home loan affordability shows it improving as lower quartile prices fall in Auckland, Tauranga & Wellington. Lower house prices see Central Auckland join Papakura and Franklin as the only parts of greater Auckland where housing is considered affordable for first home buyers. Everywhere except the other three zones in Auckland, and Queenstown, is now affordable. 

NO PRICE FOR RISK
'Risk' premiums continue to decline. Not only is the VIX near its all-time low, the premiums between risk-free US Treasuries and NZ Govt stock is shrinking as well, also down to all-time lows across the curve. One year swaps are also near all-time lows, as are investment grade CDS spreads. Markets seem to be underpricing risk substantially. It is the type of investment signal that supports asset price bubbles. And behind it all is the wall of liquidity generated by a wealthy boomer generation who are shifting their investment horizons shorter. They are besotted with ETFs and these types of funds place a premium on liquidity so they can react to mandate adjustments. Investors (like the NZSF) who can think longer term have the high return segment to themselves. Risk is evaporating from 'normal' markets - in fact, it is making them abnormal.

ME TOO
Kiwibank is the latest bank to launch a mobile payment app and device combo that will enable their business clients to take card payments from their customers.

LOOKING UP
If the dairy derivatives market for WMP continues on its current trend and holds the price indication from today, then the next dairy auction should show a +6.2% rise. The next auction is Wednesday, December 6, 2017.

EQUITY MARKETS LOWER
It is a sea of red across the equity markets in our time zone. The NZS50 is down -0.4%, the Singapore market is down -0.1%, Hong Kong is down -0.6% and Shanghai is down -0.1%. Tokyo was up but is now in negative territory. Only Sydney is up, by +0.2%.

LIMMER GETS SFF CEO JOB
Silver Fern Farms has appointed Simon Limmer as its new chief executive. He will replace Dean hamilton in March 2018. He come to the role after being Zespri's chielf operating officer and with international experience in a number of countries including China.

WHOLESALE RATES EDGE DOWN
Swap rates are up -1 bp across the curve. The 90 day bank bill rate is up +1 bp at 1.92%.

NZ DOLLAR UP, BITCOIN HOLDS HIGH
The NZ dollar has moved up more than +½c since this time yesterday and is now at 69.2 USc. On the cross rates we are up to just under 91 AU, up to 58.1 euro cents. That has the TWI-5 marginally firmer at 71.9. The bitcoin price has held on to yesterday's jump. It is now at US$9,712 and despite the rise in the NZD, it is still just above NZ$14,000. The US$10,000 benchmark will have to wait for another day. We now have the bitcoin price included in the currency chart below.

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