Jan 23 • 6M

Monday’s Dusk Chorus

ASB cuts long mortgage rates, creating ‘inverted’ rate curve; Robertson confirmed as Finance Minister; Workers grumpy & fearful despite multi-decade-high wage hikes & record-low unemployment

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TLDR: In an unusual twist for home-owners used to seeing rates only rising over the last 18 months, ASB cut its longer term mortgage rates today and created the even-more-unusual sight of a downward-sloping yield cure for mortgage rates.

A negative-sloping yield curve is a fairly good leading indicator of a recession and is essentially saying to borrowers that they should expect rates to fall in future. ASB hiked its short-term mortgage rates to around 6.8% and cut its longest term rates by as much as 40 basis points to 6.6%. Interest

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