Dawn chorus: Bond yields jump

10 year Government bond yield up sharply to 1.64%, highest level since June 2019; S&P sovereign credit upgrade ignored by bond markets; RBNZ may have nudge long rates down again

TLDR: Yesterday’s sovereign credit rating upgrade was lauded by Finance Minister Grant Robertson, but bond markets ignored it and escalated a selloff that pushed the 10 year Government bond yield — a proxy for borrowing costs — up sharply to 1.64%, its highest level since June 2019.

This is not what the Reserve Bank had planned and we’ll find out on Wednesday whether it pushes back against this by reversing its tapering of bond purchases over recent months.

Elsewhere, Leonard Hong over at the NZ Initiative has a very useful report on why changing household structures (more smaller households as an ageing population creates more empty nesters) mean we’re building way fewer houses than we need, even with zero net migration.

Also, many thanks to those who participated in yesterday’s ‘Hoon on interest rates’ with Jarrod Kerr with Kiwibank. Here’s the link to the recording.

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In the local political economy

Georgina Campbell @GeorgeKCampbell

National's housing spokeswoman Nicola Willis wants Government support for a Bill to amend the Unit Titles Act, which she says will make higher density living like apartments more attractive. @nzherald

nzherald.co.nzCall for Government to support reform of apartment living legislation - NZ HeraldBill to amend the Unit Titles Act could get its first reading in Parliament this week.

In the global political economy

CNN @CNN

New data shows that the first dose of the Pfizer/BioNTech Covid-19 vaccine "provides high levels of protection against infection and symptomatic disease," Public Health England says in a press release.

cnn.itUK study finds one dose of Pfizer/BioNTech vaccine reduces risk of infection by 72%New data from Public Health England shows that the first dose of the Pfizer/BioNTech Covid-19 vaccine “provides high levels of protection against infection and symptomatic disease,” the agency said Monday.

Signs of the time news

Katrina Bennett @KatrinaZBWgtn

Our housing market's a disgrace - mother spent 10 nights sleeping in car with her 4 children & grandchildren because the only other option was to split the kids up. No social housing available, wait list of about 15,000. Important read from @katieharrisnz

nzherald.co.nzHamilton mum forced to choose between living in a car with kids, or splitting them up - NZ Herald‘I’m not parting with my kids ... I’m not prepared to give up my children.’

Farmers Weekly NZ @FarmersWeeklyNZ

New Zealand farmers have been quick to claim world champion status for carbon efficiency. So why are they so nervous about a planned European tax on the carbon emissions of imports? Nigel Stirling reports. farmersweekly.co.nz/section/agribu…

Georgina Campbell @GeorgeKCampbell

Wellington Mayor Andy Foster is accusing a councillor and her "Labour associates" of delaying tactics after the Auditor General was called on to investigate a last-minute proposal to sell part of the Central Library building, via @nzherald

nzherald.co.nzMayor accuses councillor of ‘delaying tactics’ over Wellington’s Central Library - NZ HeraldAuditor General called on to investigate bid to sell part of Central Library building.

RNZ News @rnz_news

Demand for food parcels and housing soars in Bay of Plenty

rnz.co.nzDemand for food parcels and housing soars in Bay of PlentyBay of Plenty social support agencies are pointing to the cost of housing as a major driver of increasing social need in the community.

Notable other views

The Spinoff @TheSpinoffTV

What's really ruining our cities? Cheap, rotten, nimby opinions.

thespinoff.co.nzFed-up residents speak out on grey, characterless things ruining their suburbsNew Zealand news is replete with heartfelt articles foregrounding the agony of residents standing bravely in opposition to new housing developments (such as, most recently, this in Christchurch and this in Auckland). But what if the stories were told from another point of view? Hayden Donnell gives

James Macbeth Dann @edmuzik

Here’s my piece on the 10 year anniversary of the quakes for @Slate - the last city of the 20th century

slate.comThe Last City of the 20th CenturyThe rebuild from a devastating earthquake was Christchurch, New Zealand’s chance to reimagine what a city could be. What went wrong?

John Campbell @JohnJCampbell

@markcubey Interviewed someone today who still hasn't been paid out. Her house is cracked, leaking & mouldy. EQC took eight years to put her over cap. And the CTV building: "Police recommend that charges of manslaughter be filed... for the 115 deaths". They weren't. ChCh deserved better.

Threads worth unravelling

Geoffrey Supran @GeoffreySupran

In 1966, Shell asked scientist James Lovelock "to consider the possible global consequences of air pollution from...the ever-increasing rate of combustion of fossil fuels." It's an early example of how Big Oil studied climate, colonised academia, & invented climate denial 1/n

Ka kite anō

Bernard

PS: Thanks to Zealandia’s Nature Images on Instagram

PPS: Some fun things

Susan Metcalfe @susanamet

cow has learned how to open an electric fence

Dust-to-Digital @dusttodigital

Remembering Nina Simone, born on this day in 1933 in Tryon, North Carolina. Here she is performing “The Sound of Silence” in Montreux, Switzerland in 1968.

Jon Erlichman @JonErlichman

Change in top brands over 20 years: