Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
No changes to report today.
TODAY’S DEPOSIT RATE CHANGES
No rate changes here either.
Our review of real estate industry commissions out today shows that this sales industry earned almost $500 mln in gross commissions from the residential market in the three months to June.
The latest political poll has surprised many with the National Party support surging in July.
BNZ BOARD CHANGES
Two non-executive directors – Michaela Healey and Gavin Slater – have left the BNZ board. And Phil Chronican, currently a non-executive director on the National Australia Bank board, has been appointed to the BNZ Board as a NAB-appointed non-executive director, subject to RBNZ approval. Until April this year Chronican headed ANZ’s Australian division (and prior to that he was Westpac Group’s CFO).
LOOKING UP IN CHINA
Sentiment among executives at China’s largest companies picked up in July as gains in new orders, output and credit availability drove confidence higher, according to the latest edition of the MNI China Business Sentiment Survey.
A LITTLE WARNING SIGNAL
The latest personal bankruptcy data out today suggests this sort of credit stress is rising. It had fallen to pre-GFC levels, but individual bankruptcy data for the month of June (370) was the highest its been since November 2012.
MORE JUNK COMING
Westpac signaled that it will likely issue a tier two bond offer, a Co-Co bond that carries high risks for investors because it will convert to capital rather than be repaid if Westpac ever gets financially stressed. The offer signaled will be for “unsecured, subordinated, fixed rate notes” for a term of 10 years. There was no indication today on how much they will be seeking.
Auckland Council closed its retail bond offer today. It sought $100 mln with the option to take $100 mln in over-subscriptions. In the end it raised $180 mln. The interest rate for these bonds has been set at 3.338%, reflecting a margin of 0.90% over the effective swap rate for the 10 year period.
SWAP RATES FALL AGAIN
Wholesale rates fell and flattened today. Remember these are already at record low levels so today’s move down pushes that further. Rates fell -2 bps to five years, and -5 bps for 10 years. That flattened the rate curves further. NZ swap rates are here. The 90-day bank bill rate pipped up +1 bp to 2.31%.
NZ DOLLAR UNCHANGED
The NZD is currently at 69.9 USc, 93.5 AUc, and 63.4 euro cents. The TWI-5 is still at 73.9. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.