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A review of things you need to know before you go home on Wednesday; dairy prices up, Treasury eyes surplus, tiny C/A deficit, lower Govt bond issuance needed, swaps stable, NZD hold, & more

MORTGAGE RATE CHANGES TERM DEPOSIT RATE CHANGES A SATISFACTORY FINAL AUCTION Dairy prices rose in today s final auction of the year, taking them back to where they were at this time last year. There were good rises for cheese and butter, lesser ones for milk powders. Overall, prices rose 1.25% in USD terms from the prior event two weeks ago, +0.8% in NZD terms. No milk payout forecast will be changed by today s results. BACK TO SURPLUS? Treasury is assuming investment gains of about +$4 bln per year from 2022 to 2025 after a gain of +$7 bln in 2021 and these are to be enough to push the Crown operating balance into surplus in 2025. In the meantime, income taxes are assumed to rise +28%, GST by only +5% and operating expenses are assumed to rise by just +6%. In 2025 the OBEGAL will show a deficit of -$3.7 bln. (All this data from page 87.)

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