Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today, but Kiwibank has said it will lend 90% on KiwiBuild houses.
TERM DEPOSIT RATE CHANGES
None to report.
JOBS THREAT
Following last week's factory PMI slump, eyes today were on the services PSI from BusinessNZ. And it delivered a bounce for July after a weak June. But one component will cause worry; the employment index contracted, something we have't seen since 2013 - and that was the second contraction in a row, the first time that has happened since 2012.
FOREIGN BUYER BAN
It is now likely that the foreign buyers ban will likely become law this week.
GREAT SHAPE
We are approaching the time when our hydro storage lakes hit their lowest levels of the year and inflows are low awaiting the snow melt. But this year, our lake levels are are above average for this time of year, more like what we usually have in December, and inflows like October. We are in great shape with hydro water storage.
TAME
Data for food prices in July was released by Statistics NZ today and that shows overall prices up just +1.1% in a year. Fruit and vegetable prices were down -1.4%, meat, poultry and fish prices were virtually unchanged, grocery prices were unchanged too, 'non-alcoholic beverages' (coffee, tea, sodas, juices, etc.) up +4.0%, and eating out food was up +3.2%.
ROLLOVER?
Z Energy says they are 'considering' the launch of a new retail bond. But they have a $150 mln bond maturing on August 15, so this is probably just a rollover of that 7.50% coupon issue (which is now yielding 3.50%).
SWAP RATES HOLD
Wholesale swap rates are holding at their new lower level. Today they are up +1 bp across most durations. That has the 2-10 curve to just +85 bps. That is still fairly steep compared with most other benchmark markets,but it is as low as we have seen it in two years. The UST 10yr is weaker and now at 2.85%, down -2 bps from this morning and pushing their 2-10 curve lower, now at just +26 bps. The Aussie Govt 10yr is at 2.56% (down another -3 bps today), the China Govt 10yr is at 3.58% (unchanged, although markets have only just opened there), while the NZ Govt 10 yr is now at 2.55%, another -6 bps drop. That is now -20 bps lower since just the beginning of August. The 90 day bank bill rate is unchanged at 1.91%.
BITCOIN UNCHANGED
The bitcoin price is now at US$6,321 and virtually unchanged from where opened this morning.
NZD HOLDS LOW
The NZD's slump hasn't got worse so far today. We are now just on 65.9 USc. But it is other currencies now taking the hits. We are up on the cross rates to 90.6 AUc which is almost a +1c gain, and the euro is at 57.9 euro cents, about a +½c gain. That leaves the TWI-5 up over 69.9.
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