US markets buoyed by jobs data
9.6.25 US equity markets made solid gains Friday supported by labour market data and further signs of easing US-China trade tensions. BNZ Markets notes this morning that the S&P closed 1% higher and reached the psychological 6,000 level for the first time since February, as steady employment growth helped ease concerns about an imminent slowdown. “In Europe, the Euro Stoxx index made modest gains. Treasury yields closed higher, and the US dollar gained against G10 currencies. Brent crude...
Infrastructure bond offer likely
Infratil Ltd is considering making an offer of unsecured, unsubordinated, fixed rate infrastructure bonds to New Zealand investors. It is expected that full details of the offer will be released in the near future, subject to market conditions. If the offer proceeds, it will likely comprise two separate parts: A “Firm Offer” expected to open on 29.5.25, which will be reserved for New Zealand resident clients of the Joint Lead Managers, approved financial intermediaries and other primary market...
Cash rate reduced to 3.5%
9.4.25 The Reserve Bank’s Monetary Policy Committee today agreed to reduce the Official Cash Rate by 25 basis points to 3.5%, as was widely expected by economists. Annual consumer price inflation remains near the mid-point of the Monetary Policy Committee’s 1 to 3% target band. Firms’ inflation expectations and core inflation are consistent with inflation remaining at target over the medium term. “Economic activity in New Zealand has evolved largely as expected since the February Monetary...
Markets uneasy over tariff risk
1.4.27 The new week has begun in the same fashion as last week ended, with weaker risk appetite as investors count down the days to Liberation Day, now just two sleeps away, said BNZ Markets this morning. “Global equity markets are weaker, and commodity currencies have underperformed, seeing the NZD tumble below 0.57,” said Jason Wong, senior market strategist. “There is much anticipation about what Trump will announce on “Liberation Day, where he outlines the plan for reciprocal tariffs, on...
Cash rate cut to 2-year lo
19.2.25 The widely held consensus view was that the Reserve Bank would lower its cash rate by 50 basis points to 3.75%. And that is what was delivered. The reduction by half a percentage point (50 basis points) cut the official cash rate to a two year low of 3.75% It was the third large cut consecutively and the central bank signalled it will be more cautious in making further reductions. Markets pricing a 50-point cut was all but a done deal would have been massively surprised if the RBNZ did...
Rolling off onto higher rates
Over the past year, borrowers continued to roll off the low mortgage interest rates that were on offer in the wake of the pandemic and on to higher rates, notes Westpac. “In addition, many borrowers have shifted to shorter fixed terms or have gone on to floating rates in anticipation of rate cuts from the RBNZ. Those developments have meant that, even though carded interest rates have been dropping, the average rate that borrowers are paying hasn’t really fallen. “Consequently, high...
Interest rate curve steepens
The NZ swap curve steepened last week, with shorter term tenors slightly lower in yield and long-term tenors slightly higher, reports Westpac. “The front of the curve reflects an increased degree of conviction that the Fed will cut its policy rate by 25bps this week (now 95% priced by the market),” says chief economist Kelly Eckhold. “Meanwhile, local markets have fully priced the whole RBNZ easing cycle, implying it will end later next year with an OCR at around 3.10%. “The RBNZ has...
Infratil issues new bonds
Infratil announced that following the successful exchange offer for its offer of 6 year unsecured, unsubordinated, fixed rate infrastructure bonds that mature on 13 December 2030 (New Bonds) it has allocated $46,664,000 of New Bonds. The Exchange Offer has now closed. Combined with the firm offer issuance of $75,000,000 this takes the total Issue amount to $121,664,000.
Bond issue by Kiwi Property
2.12.24 Kiwi Property Group is offering up to NZ$100m (plus up to $25m of oversubscriptions at its discretion) of 5.5-year fixed-rate senior secured green bonds to institutional and New Zealand retail investors. The offer opens today and will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities. The indicative margin range for the Green Bonds is 1.70% to 1.80% per annum, subject to a minimum interest rate...
Airport issue oversubscribed
14.10.24 Auckland International Airport’s $200m retail offer of new shares closed oversubscribed. The offer is part of Auckland Airport's equity raising announced on 16.9.24, whereby Auckland Airport also undertook a fully underwritten $1,200m placement of new shares to existing institutional and other select investors. The new shares under the retail offer will be issued at $6.95 being the same price as shares were issued in the placement. Auckland Airport received applications...
