A review of the things you need to know before you go home on Thursday; ANZ raises TD rates at the level of its competitors, the results of bond tenders, eyes on GDP, gasoline has not yet returned to pre-pandemic prices, stable swaps, NZD firm, etc
Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No change for the moment today.
CHANGES IN TERM DEPT RATES
ANZ has increased its term deposit offers for periods of 1 to 5 years. However, the new rates bring them closer to most of their main rivals.
TOO ASK? OR WITHOUT INTEREST?
Australian company Westpac Banking Corporation is to retain ownership of Westpac New Zealand after its property review. This seems a strange result because these “strategy reviews” usually result in a divestment. You can’t help but wonder why they backed off this time.
A LOT OF DEMAND AGAIN
The Treasury put out $ 350 million in tenders today and got just over $ 1 billion in tenders. The May 2026 $ 100 million tranche drew $ 408 million in bids and earned a 1.09% return, slightly ahead of the equivalent tender of a month ago (at 1, 06% per year). The $ 100 million of May 2031 had 27 offers worth $ 380 million and was targeting a return of 1.79% per year, which was actually lower than the period of 1.87% per year. The April 2033 $ 100 million tranche drew $ 205 million in bids from 18 parties, but only two were held back at 1.96%, down from 2.11% in the previous event. The final $ 50 million attracted only $ 69 million in auctions, but out of 21 games, of which 14 were successful and they had a return of 1.12% plus CPI, up sharply from the 0, 87% more CPI the last time it was offered.
EYES ON ECONOMIC GROWTH
The end of the second trimester is now less than a week away. This will mean that estimates of economic activity for the period will start to be made. Massey’s Live GDP the tool suggests that it could rise quite sharply, up + 4% in the quarter and + 4% year-on-year.
NOT RECOVERED YET
Prices at the gas pump are skyrocketing, accelerating a trend that began in April 2020 just after the huge pullback from the first lockdown. Auckland U / L91 is now $ 2.25 / L, for the rest of the country it averages $ 2.12 / L. But these prices have not yet fully returned to March 2020 levels. This is despite the fact that in US dollars, crude oil prices have returned to May 2019 levels. Competition and declining demand mean that the petroleum component for refining, importing and distribution (and profits) has not recovered and is still below its 2015-2020 average.
INCREASE IN WEALTH
Australian Bureau of Statistics released household wealth data today in the first quarter of 2021 and which saw their “wealth per capita” reach a record high of AU $ 492,055 and a remarkable increase of + 15.3% in one year, its fastest growth in addition to a decade. Rising house prices were behind the gains, with house prices contributing +8.5 percentage points to growth and pension balances contributing +4.1 percentage points. Household wealth has grown more in the past year than in the previous three years combined. (The wealth situation of New Zealand households was published June 4, but we’ll have to wait until September 3 for the housing rating bit.)
SPREAD THROUGH NSW GOVERNMENT
Sydney’s list of COVID-19 exposure sites continues to grow, with the heart of NSW government now added as a potential hotspot after a senior MP contracted the virus.
From yesterday’s level, the price of gold is down -US $ 3 and now at US $ 1,777 / oz in early Asian trading.
THE EQUITY MARKETS ARE NOT GOING AWAY
The S & P500 closed the previous Wall Street session down -0.1% after a late sell-off. Tokyo opened a small + 0.2%. Hong Kong opened + 0.4% while Shanghai stagnated at the start of trading. The ASX200 is down -0.1%, while the NZX50 Capital index is trading flat today.
MAINTAINING SWAP AND BOND RETURNS
We do not yet have today’s swap closing rates. If there are any significant changes again today, we will update this item. They probably held on, little changed. The 90-day bank note rate was down -1bp to 0.33%. The ten-year Australian government benchmark rate changed little at 1.52%. The ten-year Chinese government bond is unchanged at 3.11%. The ten-year New Zealand government is unchanged at 1.82% and now above the previous RBNZ patch of 1.80% (-2 bps). The ten-year US government is up + 2bp to 1.49%.
THE NZ ENTERPRISE DOLLAR AGAIN
The Kiwi dollar strengthened a bit as of this hour yesterday and now sits at 70.5 USc. Against the Aussie we are also up at 93.1 AUc. Against the euro, we are up to 59.1 euro cents. This means the TWI-5 is now a bit firmer at 72.9.
The price of bitcoin is now at US $ 32,632, down -3.8% from where we were at this time yesterday. He’s had most of that fall in the last hour. Volatility over the past 24 hours has been high at +/- 3.5%.
This soil moisture table is animated here.
Stay ahead of upcoming events by following our Economic calendar here ».