Reserve Bank is keen to keep mortgage interest rates low in the face of rising bond yields. Photo / NZ HeraldRising bond yields have continued to put the market at odds with the Reserve Bank's efforts to keep funding costs low. But they said the Reserve Bank would tolerate higher bond yields so long as they don't translate into mortgage rate increases. Market strategist Imre Speizer said there was tension between the Reserve Bank's goal of keeping rates low and what is happening in the bond market. ANZ senior strategist David Croy said the Reserve Bank was unlikely to be overly concerned by the rise in yields.

Source: New Zealand Herald March 09, 2021 16:02 UTC