U.S. rates put upward pressure on New Zealand mortgage rates: Kiwibank-Xinhua
WELLINGTON, Oct. 5 (Xinhua) -- Stronger-than-expected U.S. economic performance is putting upward pressure on New Zealand mortgage rates as higher U.S. bond yields have pushed up New Zealand wholesale swap rates, a key benchmark for fixed mortgage rates, Kiwibank said on Monday. Strong U.S. economic performance could lead financial markets to price in higher interest rates, with expectations for rates to remain higher for longer, the New Zealand state-owned bank said in its weekly economic commentary. As a small economy, New Zealand's wholesale funding costs are influenced by international developments, with higher U.S. bond yields pushing up New Zealand wholesale swap rates, which can mean higher fixed mortgage rates, Kiwibank said, adding that wholesale interest rates tend to move to...