Here are the key things you need to know before you leave work today.

CHANGES IN MORTGAGE RATES
The Heretaunga construction company has increased its fixed rates by one and two years.

CHANGES IN THE TERM DEPOSIT RATE
The Heretaunga Building Society has also increased all of its term deposit and savings rates.

BECOME SERIOUS
RBNZ filed statement in High Court claim against TSB for “ recognized breaches ” of the law on the fight against money laundering and the financing of terrorism. This is the first legal action brought by the RBNZ against a bank. The TSB is not accused of money laundering, but rather of having weak protections and, even worse, not fixing them properly after the RBNZ asked them to do so.

INCREASING YIELDS
There was another one NZGB bond offering today with four free tenors. The $ 100 million in May 2026 attracted $ 325 million in auctions and resulted in an average return of 1.13% per annum, which is higher than the previous 1.06%. The $ 100 million in May 2031 drew $ 305 million in auctions and went up 1.88%, also an increase from last time. The $ 100 million in May 2033 drew $ 463 million and returned 2.10% from 2.11% last time around. There was also a September 2040 inflation-linked bond offering of $ 50 million, attracting $ 70 million in auctions. This return is 1.00% plus the CPI, and well above 0.87% plus the previous CPI.

ROCKET PROFIT
New Zealand manufacturer of respirators Fisher & Paykel Healthcare (FPH and # 1) has seen tremendous demand for its products as Covid swept the world. Its profits are up + 82% to $ 524 million paid in tax.

A GOOD YEAR
Stride property (SPG # 32) also today posted annual results of $ 132 million on a $ 1.1 billion portfolio.

RETIREMENT PROPERTY
The listed senior care sector (an ownership game) comprises four NZX50 companies representing 8% of the overall index capitalization (Arvida # 29, Ryman # 7, Oceania # 34 and Summerset # 13). Last week it fell -2.8% even though the overall NZX50 index rose + 0.7%. But since Sepetmebr 2020, this sector has gained + 9.6% while the overall increase has been + 4.9% since then.

LOCK AGAIN
The State of Victoria will enter a seven-day lockdown at midnight local time as pandemic infections continue to spread across the state. The B1.617.1 variant moves in their community. Victorians will only be allowed to leave their homes for shopping, authorized work, limited exercise, caregiving and getting vaccinated. And they will not be able to walk more than 5 km from their house. It is clear that the suspension of the Trans-Tasman flight bubble with Melbourne will be extended by New Zealand.

MAKE HAY
Profits of large Chinese industrial companies rose by still fast pace in April, despite high commodity prices and weaker performance in the consumer goods sector. While year-over-year comparisons distort usual benchmarks, compared to April 2019 those profits were 49% higher and operating revenues were + 33% higher.

GOLD SLIPS
The price of gold is now at US $ 1896 and down + US $ 9 in early Asian trading compared to yesterday. The New York market closed at US $ 1897 / oz and London at US $ 1900.

SHARES DUMPED IN NZ
The S & P500 ended its Wall Street session today gaining a minor + 0.2%. The very large Tokyo market opened its session down -0.7%, Hong Kong is down -0.3%, but Shanghai is up + 0.5% at the start of the session. The ASX200 is slightly up + 0.2% at the start of the afternoon while the NZX50 Capital index is down -1.2%. Locally, FPH, Ryman, Rakon, Restaurant Brands, Chorus, Summerset and ATM are all enjoying great success.

INCREASE IN SWAP & BONDS RETURNS
We do not yet have today’s closing swap rates after yesterday’s jump. If there are any significant changes again today, we will update this item. The 90-day bank bill rate was down -1bp to 0.33%. The benchmark ten-year Australian government rate is down -2bp since yesterday to 1.60%. The 10-year Chinese government bond holds at 3.09%. But the ten-year New Zealand government is up +2bp to 1.90% and now above 1.88% in the previous RBNZ patch (+12bp). The ten-year US government is unchanged at 1.58% as global bond markets remain in a risk-free tone.

NZ DOLLAR STAYS AWAY
The Kiwi dollar remained high at 72.9 USc. Against the Australian we are seriously at 94.3 AUc. Against the euro, we are firm at 59.8 euro cents. This means the TWI-5 is up at 74.5 and holds yesterday’s rise.

BITCOIN FALLS TODAY
The price of bitcoin is now at US $ 37,450 and down -4.6% from yesterday. The volatility over the last 24 hours is still very high at +/- 4.8%.

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