Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report.
DEPOSIT RATE CHANGES
Westpac has made some changes to their TD rates today, adding +25 bps to their 2 and 3 month rates taking them to 1.50% and 3.00% respectively. Their five month rate has been reduced by -25 bps and is now 3.10%. For rates of 9 month, a -10 bps reduction applies. For 12 and 18 months the cut is just -5 bps. They also cut their bonus saver and by a notable -30 bps to 2.10%. Their ‘Encore business’ deposit rates were chopped hard to just +0.05%, a rate so low you wonder why they bothered to offer anything.
There has been a minor Cabinet reshuffle today. The main talking point is the handing of some core housing portfolio responsibilities to Amy Adams.
NOT WHAT WAS EXPECTED
The French election has come up with a truly odd result, in many ways. Firstly, the party of the current president has been humiliated. Secondly, the party of the usual centre-right opposition has been nudged into third place and out of contention. The winner of most votes on the first round is a centerist who campaigned that staying with the EU is the best path for France and he will most likely win the runoff. The far right candidate did manage to get into second but all other losing candidates are rejecting her and throwing their support behind Emmanuel Macron. Le Pen it seems is unelectable. And the result may be a ringing endorsement for a united Europe. All a bit like what happened in Holland a few weeks ago and proving euro-sceptics are all a bit of a fringe. The euro has risen in relief.
WHOLESALE RATES RISE, STEEPEN
Local swaps rates have risen yet again today with a steeper bias. They are up +3 bps for two years, up +5 bps for five years and up +6 bps for ten years. The 90 day bank bill is up +2 bps to 1.97%
NZ DOLLAR UP
The NZD is definitely firmer today than on Friday. We are back to 70.3 USc. Against the AUD, we are up to 93.1 AUc. Against the EUR we are lower at the 64.9 euro cents level as markets think the le Pen challenge will fail. The TWI-5 is now at 75.
You can now see an animation of this chart. Click on it, or click here.