A review of things you need to know before you go home on Monday; many rate and cash-back changes, good time to buy a house, consumer spending rises, more bond issues, swaps and NZD on hold, & more

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

MORTGAGE RATE CHANGES
There have been a number of changes today. ANZ launched a 1 year 3.95% fixed rate, down -20 bps. Kiwibank raised its 2 year rate +10 bps back to 4.29%. BNZ cut its 2 year fixed rate 'special' by -30 bps to 3.99%. None of these represent market-leading rates which are still offered by HSBC Premier and SBS Bank (despite the breathless marketing claims by both ANZ and BNZ, neither of which were true which was disappointing by them, unnecessary, and just reinforces consumer cynicism of banks).

TERM DEPOSIT RATE CHANGES
Kiwibank is now offering a market-leading 3.60% one year term deposit rate. ANZ has trimmed -5 bps from their 2, 3 and 4 year term deposit rates. FE Investments raised their one year and 18 month term deposit rates, both to 5.20%.

A SOLID UNDERCURRENT
The ANZ Monthly Inflation Gauge fell -0.4% month-on-month (up +2.9% year-on-year) in October, kicking Q4 off on a softer note, says ANZ. However, they say they think the headline could be understating the underlying pulse. There was only one area of significant weakness in the Gauge – the recently-volatile accommodation services component – and the number of components to lift in the month hit an 8-year high. Excluding accommodation services, the index lifted +0.3% month-on-month.

DON"T FORGET THE CASH-BACKS
In the mortgage rate change flurry, we shouldn't lose sight of ANZ's push to offer $3,000 cash back on new mortgage deals, under certain conditions. These cash-back deals have been around unadvertised. But first Kiwibank, and now ANZ have made part of their offer overt.

A GOOD TIME TO BUY?
An ASB housing confidence survey has found the fewer people think house prices will rise from here. The survey also shows more think it's a good time to buy.

SPENDING MORE ON CARDS
Electronic card transactions in October were up an impressive +6.4%, but pushed up by a +13% rise for petrol. But there were some other sectors with healthy rises as well. Consumer durables were up +7.6% and services were up +10%. The overall +6.4% rise was the highest gain since April 2016. The petrol rise was the highest since the end of 2013. The average transaction size also rose, its first year-on-year rise for a while.

TOURISM AN INDUSTRY AT SCALE
Nights spent in short-term tourist accommodation set a new record in the year ended September 2018, surpassing 40 mln guest nights for the first time, Stats NZ data revealed today. The big growth is coming from hotels.

BNZ BOND ISSUE SEEKS AT LEAST $100 MILLION
BNZ is seeking to borrow at least $100 mln through a bond offer. The offer of five-year unsecured, unsubordinated fixed rate notes has an indicative margin of 1.00% to 1.05% per annum. BNZ says the bonds will be listed on the NZX Debt Market and are expected to have an AA- S&P credit rating, and an A1 Moody’s rating, equal to BNZ's own ratings. The offer is open for unlimited oversubscriptions.

MORE BOND OFFERS COMING
Christchurch City Holdings Limited is considering an offer of 6 year, unsecured, unsubordinated, fixed rate bonds maturing in November 2024 to New Zealand retail investors and to institutional investors.

BANKS TO DECIDE WHAT IS 'RESPONSIBLE'
In Australia, 'responsible lending' rules are making the banks into arbiters of what is best for you. ANZ is preparing a major overhaul of the way it assesses and checks mortgage loan applications including deep-dive analyses of applicants' income and introduction of sophisticated credit checks. Bank staff and mortgage brokers are being briefed about what to ask at initial interviews, financial documentation required and third-party verification changes that are due to be launched on November 20. Ten borrower options covering downsizers, older employees working past retirement and use of retirement savings to pay-off loans are targeted by the bank with additional requirements. This fallout from their Hayne Royal Commission means that banks will become paternalistic at best, patronising at worst. Customers will blame the banks, but it really is what the regulators will now require of them. Customers, and especially customers with mortgage brokers will be treated with suspicion. Hope this trend doesn't follow here, because the unregulated shadows won't be far behind.

SWAP RATES UNCHANGED
Swap rates are unchanged today from their new higher levels. The UST 10yr yield is also unchanged at 3.19% and seems likely to stay at this level tomorrow because it is a public holiday in the US. Other benchmark bond rates are not as volatile. The Aussie Govt 10yr is at 2.73% (down -2 bps today), the China Govt 10yr is up +1 bp at 3.51%, while the NZ Govt 10 yr is up +1 bp to 2.83%. The 90 day bank bill rate is unchanged at 1.99%.

BITCOIN LITTLE CHANGED
The bitcoin price is at US$6,392, up +1.0% from this morning.

NZD HOLDS
The NZD is unchanged from where it opened this morning at 67.4 USc. On the cross rates we are also holding at 93.2 AU, and at 59.5 euro cent. That puts the TWI-5 at just on 72.

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