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NZ fixed mortgages rate are rising despite the RBNZ rate cut: link Today in response the RBNZ released a very important statement (you can see that as on the market the NZ$ lost 2 cent against the AU$) link Kind of surprising the market reaction, I don't think was anything new. Australia...

an update from NAB I think they are just lobbying to get pressure out of them. In any case lately the 10 year treasury bonds has been quite high and above 4.4% today, for sure funding is not going down for the longer term fixed rates

have you got the detail about that? I haven't read about it (or don't remember). If you are right how about the 0.7%, then, when banks borrow in other currencys (like westpac this week borrowed in japanese jen), 0.7% on the japanese jen is very different then 0.7% on the AU$. do you know how...

today also NAB sold more government backed bond, this time the yield is 75 point over the 5 year swap, back in december when government start backing banks bonds it was over 100 points over swap. On the other hand the swap rate is higher and the 5 year government bond is at 3.85% yield. link

In the last week I have noticed the yeald of the 10 year government bond rising (price falling), this was after 1 month of stable yeald and 6 months of yeald falling. This is important as banks funding spread is somewhat link to the gov bond yeald. here is the chart for the 10 year gov bond...

An interesting update on mortgages in US from bloomberg, I know that a lot of member on this forum think that over here is different and don't care on what happen in US, but who (like me) think more global there are sign the credit crunch is easing and the FED is succeding in getting banks in US...

from the australian Thaw was funding in US$ there would be some extra cost on forex hedging for NAB, I think the 3 year bond would have been around 2.6% yield

Interesting to see westpac rising their supercheap 3 year fixed loan, I am sure they where loosing money on it, even now to me their 3 year fixed offer looks very cheap. More update from bloomberg on bank funding:

That's a good question. Unfortunately there is not a reliable indicator that would give you a clear indication, even in US and Europe the TED spread and libor are not a good indicator anymore. The equivalent in Australia are the banks bill that you can find on RBA website or on NAB website...

???I don't understand your point. I hope that weather you are talking or walking you'll know what you are doing. Anyway I think you should find important to see and understand what is the cost of funding for banks these days. This wouldn't effect the variable mortgage rate but for sure is v ery...

Interesting report on bloomberg about australian banks funding using the new government backing guarantee. I would call that more "the Australian bank bailout" as taxpayer will pay for those bonds if banks are not going to be solvent. Interesting to see that this bailout effect state debt...