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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."
5 Comments
Should citizens wish for more
Should citizens wish for more of their state servants?
Or is it a case of NZ slipping into banana republic status? Previously upheld protocols have diminished in importance or have been relegated in the service of self service?
This is a case of an order error and should have been dealt with as such.
The NZDMO should have purchased existing stock in the market place to correct the error. End of story. The staff member responsible for the error formally warned etc.
Now we have a so far unrecorded amount of stock floating in the market place.
In a most unusal state of affairs NZX confirmed yesterday's tender result's today as originally posted by the NZDMO yesterday. No sign of the amendement to issuance mentioned above.
Historically, NZX confirms completion of a NZDMO tender on the tender date - not the next day.
I don't think the "formal
I don't think the "formal warning" model of NZ employment is achieving the quality required of important positions.
It's about time that some accountability was put on NZ employee's for the results of their actions.
In case like the above, then the employee's involved should have to make right the value of the parties losses, and if the failure was easily avoidable with due care, dismissal as well.
For self-employed people and business owners, if you screw up, the loss comes out of your pocket if your actions are incorrect; why should it be different for employees in positions of responsibility?
I smell a rat. Follow the
I smell a rat. Follow the paper trail....
Follow the paper
Follow the paper trail....
Where do you suggest? - Up to now NZX is ignoring the private placement in terms of index calculations. Outside the NZDMO press announcement this trade remains ficticious.
This mechanism opens the floodgates for corrupt private issuance, to those worthy in the minds of Treasury, monetised with taxpayer dollars, without the need for independent public record. I thought NZX would have updated their bond index mail service to reflect the new outstanding amounts by now - but nothing yet.
Thank you NZX for restoring
Thank you NZX for restoring my confidence in the veracity of your counterbalancing public reporting scheme for outstanding government debt.