Black Monday

[bull....]

Unlike u many like me look at longer term picture and position accordingly ....Already record interest payments going from mortgage holders's pockets ...it will further accelerate ahead on its own when more mortgages gets re fixed at much higher rates ...RBNZ will have a very high threshold to raise rates ...bonds will seesaw on daily basis ...but US markets shud be more worried sitting so close to all time high ...NZX is and will be more steady ...IMO

orr said at last meeting mtge's should not need to rise from here as we are not raising the ocr anymore

so now we have all big banks raising mtge rates so they ethier dont listen to orr and just follow bond rates or they dont believe rbnz wont raise again and are just raising in advance of orr raising ocr again ( prob not next meeting but later )

[Daytr]

orr said at last meeting mtge's should not need to rise from here as we are not raising the ocr anymore

So now we have all big banks raising mtge rates so they ethier dont listen to orr and just follow bond rates or they dont believe rbnz wont raise again and are just raising in advance of orr raising ocr again ( prob not next meeting but later )

According to the banks the rise in rates are due to the rising costs of offshore funding. Seeing only about 15% of their funding comes from offshore it's pretty hard to believe. Bank's margins had been squeezed as they absorbed some of the RBNZ rate increases. I would suggest it's the banks pushing those margins back out.

It also appears by the look of the curve they are countering demand for those rolling onto the new rates from locking in short term & enticing them to go 3 - 5 years.

With most predicting the Reserve Bank will lower rates in the first half of '24 many home loan holders probably only want to lock in short term.

[thegreatestben]

Looks like more people are falling for the 3 year lure - https://www.interest.co.nz/personal-...interest-rates

[SailorRob]

orr said at last meeting mtge's should not need to rise from here as we are not raising the ocr anymore

so now we have all big banks raising mtge rates so they ethier dont listen to orr and just follow bond rates or they dont believe rbnz wont raise again and are just raising in advance of orr raising ocr again ( prob not next meeting but later )

Mortgage rates got little to do with OCR, unless you're talking floating.

[bull....]

Mortgage rates got little to do with OCR, unless you're talking floating.

im no expert on ocr but it affects costs on banks i believe so maybe thats why rates move before and after announcements.

[bull....]

According to the banks the rise in rates are due to the rising costs of offshore funding. Seeing only about 15% of their funding comes from offshore it's pretty hard to believe. Bank's margins had been squeezed as they absorbed some of the RBNZ rate increases. I would suggest it's the banks pushing those margins back out.

It also appears by the look of the curve they are countering demand for those rolling onto the new rates from locking in short term & enticing them to go 3 - 5 years.

With most predicting the Reserve Bank will lower rates in the first half of '24 many home loan holders probably only want to lock in short term.

i agree with you its probably margin expansion maybe to prop up sagging mtge lending ?

[bull....]

nz market getting savaged today , bond yield's at record high's this cycle

[bull....]

that was a big comeback this arvo by nz market

bull's nz stock's hanging in there

fbu the only notable entry holding up well



bull's multi - baggers have been doing well this week though

meta
duratec
close loop

when stocks do well on a bad tape thats a good sign

[alokdhir]

that was a big comeback this arvo by nz market

bull's nz stock's hanging in there

fbu the only notable entry holding up well



bull's multi - baggers have been doing well this week though

meta
duratec
close loop

when stocks do well on a bad tape thats a good sign

When someone says " BUY THE DIP " ...then dont make fun of him ....Bonds yields and what not u try to scare people ....eventually people will realise whom to trust ...lol

[Daytr]

Interesting short clip on how Roman emperors one after the other devalued the currency that lead to rampant inflation and the destruction of the empire.
https://youtu.be/qjkwVjpt6jk