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NZ Debt Management Office says operational issue meant NZ$26 mln in bids for govt bonds excluded from Thursday's auction; Will honour them
The Debt Management Office says it will honour NZ$26 million worth of bids for the government's 2023 bonds which were accidentally excluded from yesterday's auction.
The extra bonds were issued at yields at or below the maximum successful yield of the tender, the DMO said.
In yesterday's auction, NZ$100 million of 2015 bonds received NZ$390 million worth of bids, and NZ$152 million of 2023 bonds received NZ$392 million worth of bids.
The weighted average successful yield for the 2015 bonds was 2.74%, up from 2.67% when they were last issued on August 2. The weighted average successful yield for the 2023 bonds was 3.86%, up from 3.72% on August 19. See the historical yields here.
"As a result of an operational issue, some bids in today’s tender for the 15 April 2023 bond were excluded in error. These bids were submitted in accordance with NZDMO’s Operating Rules and Guidelines," DMO Treasurer Brendan Doyle and Acting Head of Portfolio Management Andrew Hagan said.
"Because the bids were submitted in accordance with the Operating Rules and Guidelines, NZDMO will honour those that would have been successful based on the tender result as announced," they said.
"As a result, an additional NZ$26 million of bonds have been issued on a private placement basis. The bonds were issued at yields at or below the maximum successful yield of the tender."