The hike by the RBNZ yesterday coincides with our view that global bond yields / interest rates have bottomed, no Einstein call although we have been onboard this view for over 12-months. The strong correlation between interest rates in Australia and New Zealand implies home owners should be considering locking in some of the attractive offers in the market e.g. fixed rate for 3-years around 2%. This move reiterates what we’ve been discussing at length over recent months – growth stocks will need to really deliver on the corporate level to justify elevated valuations.
MM remains bullish bond yields / interest rates
