Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes here today.
TERM DEPOSIT RATE CHANGES
The Cooperative Bank has cut long term deposit rates, flattening them significantly. Their 18 mth offer is down -5 bps while their 4 year offer is down -20 bps.
PEAK RENTAL CAR
In March 2019, there about 50,300 rental cars licensed in the country, A year ago that number was 51,300. In fact, the number reached its numerical peak at the beginning of 2018. But the growth rate has been slowing since 2017. All this mirrors our tourism data.
LESS DEBT ON ISSUE ...
The total gross level of NZ Government bonds slipped below $80 nln in March for the first time in more than a year.
... BUT HIGHER NON-RESIDENT HOLDINGS
The proportion of Government debt held by foreigners has risen as the bond holdings dip. In March this proportion is just under 50%, its highest in 2019, but still well below the peak level of 62% last recorded in mid 2016. The reduction in non-resident holding happened fast in the 2016 to 2017 period with another burst lower in the second half of 2018.
NOTHING TO SEE HERE
The just-released minutes from the RBA's April meeting show they think a rate cut could be appropriate if the Aussie jobless rate started to move up, which a few economists are forecasting. But it is just one scenario they discussed. They also see their economy trucking along well with low unemployment levels, inflation rising to their target and growth in the real economy holding firm. Housing risks are the only ones holding them back, and they are watching how the wealth effect plays out on consumption. These minutes had virtually zero impact on the AUD exchange rate. But the ASX has risen today although it is doubtful this was a result of the RBA release.
LOCAL SWAP RATES HOLD
Local swap rates are down -1 bp today, holding on to most of the rise we had yesterday. The UST 10yr rate has also held on yesterday's solid rise, dipping back just -1 bp today too to 2.55%. Their 2-10 curve is still at +16 bps and their negative 1-5 curve is at -7 bps. The Aussie Govt 10yr is at 1.93% (down -2 bps), the China Govt 10yr is back at 3.40% and down -1 bp, while the New Zealand Govt 10yr is now at 2.05% and giving up all of yesterday's 4 bps rise. The 90 day bank bill rate is -1 bp lower at 1.83%.
NZ DOLLAR WEAKENS
The NZ dollar is softer at 67.5 USc. Against the Aussie we are virtually unchanged at 94.4 AUc, and softer at 59.7 euro cents. The TWI-5 is now back atat 72.
BITCOIN DOWN
Bitcoin is now at US$5,045 and -2.2% lower than this time on yesterday but little-changed from this morning. Bitcoin is tracked in the chart below.
This chart is animated here. For previous users, the animation process has been updated and works better now.
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