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negative interest rates

October Market Commentary

The joy of low interest rates As we finish another month, we have further historical events occurring. This time it is closer to home, with 2-year & 5-year government bond yields falling into negative territory for the first time in history. In September, the 5-year NZ government bond rate went as low as -0.06%. This is down from the not so attractive 0.66% six months ago. NZ Yield Curve – 18th Sept 2020 Source: The Daily Shot This has also led to mortgage rates in New Zealand dropping, which in turn is throwing further fuel on an already overpriced NZ […]

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