US deficits and debt grows; IMF sees productivity the main problem; Japan scandal; London house prices fall; EU to 'stand up to bullies'; UST 10yr at 2.87%; oil and gold drop; NZ$1 = 72.9 USc; TWI-5 = 73.9

Here's our summary of key events overnight that affect New Zealand, with news the US budget deficit is swelling quickly and new debt issuance is building up.

But first we need to advise that there will be no video version today.

First in the US the February budget outcome is usually the largest monthly deficit of the year - and February 2018 was no exception, coming in+12% higher than for 2017. This was however about what markets were expecting. But it is big, a massive -US$215.2 bln in one single month.

Meanwhile, the supply of US government bonds hitting the market has been increasing this year as these deficits rise in the wake of their tax cuts. Today and tomorrow the US Treasury auctions another US$21 bln in 10-year notes and US$13 bln in 30-year bonds and eyes will be on the rates offered.

The IMF is saying that low wage growth has more to do with high unemployment and weak productivity than automation or falling union membership.

In Japan, a document fraud scandal has blown up around Prime Minister Abe and his administration.

In England, London house prices are falling at the fastest pace since the depths of the GFC almost a decade ago, with the capital’s most expensive areas seeing the biggest declines.

And the chief EU trade negotiator said overnight they will "will stand up to the bullies" over protectionism as tensions continue over American tariffs on steel and aluminium.

In Australia, their royal commission into 'financial services' (read: the banks) will begin hearings into mortgage fraud today in Melbourne and the fist one under the microscope is NAB, BNZ's owner.

And back in the trenches, Westpac has upped the ante in Australia with a new set of rate and fee discounts aimed at residential property market investors and first home buyers. They are also targeting a new type of investor, one who rents in one area while investing for a capital gain in another in the hope that the profit will allow them to buy in their desired area, the 'rentvestor'. Even with chunky capital gains taxes, this type of capital-gain-chasing is on the move in Australia again.

In New York, the UST 10 yr yield is down -5 bps at 2.87 %.

The gold price has fallen back today, down -US$6 and now at US$1,318/oz.

Oil prices are lower too with the US benchmark down to just over US$61/bbl and the Brent benchmark now just over US$64.50/bbl.

The Kiwi dollar will start today a little lower as well at 72.9 USc. On the cross rates we are at 92.7 AUc and 59.2 euro cents. That puts the TWI-5 at 73.9.

Bitcoin is now at US$9,200, down -3.8%.

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The easiest place to stay up with event risk today is by following our Economic Calendar here ».