Bonds
First IIB tender for 2014 sees new 2030 linkers receive a successful weighted average yield of 2.9808%
13th Feb 14, 2:17pm
by
Hot on the heels of the government bond repurchase tender yesterday the NZ Debt Management Office (NZDMO) tendered $200 mln of the 2030 inflation-indexed bond which attracted solid demand. The tender had a coverage ratio of just under 2.5x.
According to Westpac in their preview of this tender, there are several factors supporting this issue, including the addition of the NZ inflation linked bonds ("linkers") in the global benchmark index.
With the latest CPI number coming in at 1.5% pa. this would give the IIB's an indication nominal yield of approxinately 4.5%.
The current yield on the NZ government bond with the longest duration (maturing in 2023) is 4.60%.
| 20 September 2030 | Today #513 | Prior #511 | Prior #509 | Prior #507 |
| Series offered |
tender Feb 13, 2014 |
issued Dec 5, 2013 |
issued Nov 21, 2013 |
issued Nov 7, 2013 |
| Total Amount Offered ($million) | 200 | 200 | 200 | 200 |
| Total Amount Allocated ($million) | 200 | 200 | 200 | 200 |
| Total Number of Bids Received | 56 | 72 | 32 | 71 |
| Total Amount of Bids Received ($million) | 473 | 615 | 268 | 603 |
| Total Number of Successful Bids | 17 | 20 | 25 | 24 |
| Highest Yield Accepted (%) | 3.02 | 2.890 | 2.850 | 2.660 |
| Lowest Yield Accepted (%) | 2.955 | 2.840 | 2.670 | 2.565 |
| Highest Yield Rejected (%) | 3.200 | 3.100 | 2.990 | 2.820 |
| Lowest Yield Rejected (%) | 3.020 | 2.890 | 2.850 | 2.670 |
| Weighted Average Accepted Yield (%) | 2.9808 | 2.8780 | 2.7552 | 2.6339 |
| Weighted Average Rejected Yield (%) | 3.0751 | 2.9465 | 2.8862 | 2.7256 |
|
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* |
25 | 87 | 44 | 100 |
| Coverage Ratio | 2.365 | 3.075 | 1.340 | 3.015 |
*Individual allotments may vary due to rounding.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.