Interest Rate Roundup

Thursday, June 07, 2007

More overseas central bank action: 1 hike, 1 cut, 1 pass

There's a lot of overseas central bank interest rate action to talk about this morning. Let's get right to it ...

* New Zealand's central bank went ahead and hiked rates, as I mentioned it might yesterday. That leaves that country's benchmark short-term rate at 8% -- its highest level ever. The New Zealand dollar climbed to a 22-year high as a result of the hike, the third since March.

* In Brazil, the central bank cut interest rates by 50 basis points to 12%, a record LOW. Rates have plummeted from a high of 19.75% in September 2005. Inflation there has been plunging due to a surge in the Brazilian currency, the real.

* Meanwhile, the Bank of England took a pass. It left short-term rates at 5.5%, a six-year high.

As for the U.S., Treasuries are getting plowed under yet again in early trading. The long bond is off 23/32 right now, while 10-year yields have shot up almost 7 basis points to 5.03%.


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