Oil rises and NZ dollar ebbs
27.3.26 Oil prices, the US dollar, and bond yields all rose amid market scepticism that a de-escalation in the Iran war was likely soon, reports Westpac this morning. Currencies: “The US dollar index is up 0.3% on the day. EUR fell from 1.1570 to 1.1523. USD/JPY rose from 159.40 to 159.79. AUD fell from 0.6957 to 0.6885 – lowest since late January,” says Imre Speizer, New Zealand market strategist. “NZD fell from 0.5808 to 0.5757 – lowest since mid-January. AUD/NZD round tripped from 1.1965 to...
RBNZ vigilant on Inflation spike risk
26.3.26 The Reserve Bank of New Zealand (RBNZ) is well positioned to handle the challenges to price stability and financial stability mandates caused by the ongoing conflict in the Middle East, Governor Anna Breman said in a speech this week aimed at calming market nerves. “We are likely to see higher headline inflation over the near term, and somewhat weaker growth momentum,” Governor Breman says. In the speech, Global shockwaves to Kiwi shores: The impact of the Iran conflict on New...
Potential bond offer by Property for Industry
26.3.26 Details of Property for industry’s proposed bond offer – which was popstpo9ned earlier this month given uncertain markets conditions – are now expected to be announced in the week beginning 30 March 2026, when the offer is anticipated to open. On 24 February 2026, Property for Industry announced it was considering an offer of 6.5 year senior secured fixed rate bonds (Bonds) to New Zealand retail and institutional investors and Australian institutional investors. If PFI proceeds with...
Mercury opens Green Bonds offer
23.3.26 Mercury NZ is offering up to $200 million (with the ability to accept up to an additional $50 million in oversubscriptions at Mercury’s discretion) of 7 year unsecured, unsubordinated, fixed rate green bonds (Green Bonds) to institutional investors and New Zealand retail investors. The offer is expected to close on 25 March 2026, with the Green Bonds expected to be issued on 1 April 2026. The interest rate for the Green Bonds will be set on the rate set date as being equal to the sum...
Interest rates push upwards
10..3.26 Global interest rates have pushed higher in response to the attacks on Iran Markets are interpreting the developments as an inflationary supply shock,” says Stuart Ritson, senior fixed interest strategist at BNZ Markets. “The dominant concern is oil-driven inflation which has contributed to the market pricing more hawkish outcomes for global central banks including the RBNZ. “A sustained disruption to Middle Eastern energy supply could have a material impact on the inflation outlook,...
Cash Rate steady on 2.25%
With the economy at an early stage in its recovery, the Reserve Bank decided to hold the Official Cash Rate unchanged at 2.25% today. The Governor of the RB, Dr Anna Breman, delivering her first OCR announcement Monetary Policy Statement said, “.If the economy evolves as expected, monetary policy is likely to remain accommodative for some time. ‘The Committee will continue to assess incoming data carefully. As the recovery strengthens and inflation falls sustainably towards the target...
Flat month in US retail
11/2/26 Softer than expected US retail sales supported the case for Fed rate cuts which contributed to a decline in treasury yields and a stronger yen, notes BNZ Markets this morning. US retail sales were unexpectedly flat in December which was well below the 0.4% consensus estimate, says senior fixed interest strategist Stuart Ritson. “Core sales and the control group also undershot expectations. There was broad weakness across the underlying categories. The broader backdrop points to a...
Wild swings in gold and silver
3.2.26 In overnight trading, gold and silver fell to fresh lows before showing decent bounces and US equities are on a much better footing, reports BNZ Markets. “US Treasury yields have pushed higher and the USD is modestly stronger, with moves extended following a stronger than expected US ISM manufacturing survey.,” says Jason Wong, senior markets strategist “The ISM manufacturing composite rose a chunky 4.7pts to 52.6, its strongest level in over three years and well ahead of consensus...
US dollar remains under pressure
The US dollar remained under pressure overnight and made broad based losses against G10 currencies, with the dollar index falling to a four-year low, reports BNZ Markets. “The widely watched dollar index (DXY) is on track for the sharpest 4- day decline since the tariff volatility last April and has fallen to the lowest level since early 2022, comments Stuart Rition, senior fixed interest strategist. “Concerns about US economic policy and potential for FX intervention to support the yen have...
ASB adjusts interest rates
18.1.225 ASB has lifted some of its fixed home loan and term deposit rates and lowered its 6-month home loan rate to a market leading 4.65%, in response to longer term wholesale rate movements. Fixed mortgage rates are influenced by a variety of different market forces, including customer deposit rates, operating costs, the cost of overseas funding and wholesale interest rates. Unlike variable rates which are connected to the Official Cash Rate (OCR), fixed rates are more influenced by...
