Home mortgage rates look set to plumb record lows after government bond yields sank to their lowest point in just over 30 years this week.

The New Zealand 10-year swap rate hit 1.94 per cent and the 10 year government bond yield hit 1.71 per cent yesterday, continuing a trend that has prevailed here and around the world since the start of the year as inflation pressures evaporate and as evidence of a slowdown in the global economy starts to build.

Today's 10 year bond yield is a far cry from its record high of 19.2 per cent in May,

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