NZ Govt Bond Tender #688; weighted average accepted yield was 1.98%; coverage ratio was 2.13x

NZ Govt Bond Tender #688; weighted average accepted yield was 1.98%; coverage ratio was 2.13x

The New Zealand Debt Management Office has announced the results of NZ Govt Bond tender number 688 held on July 18, 2019.

Tender Date: Thursday, July 18, 2019

Bids close: 2.00pm

Results: From 2.05pm

Settlement Date: Tuesday, July 23, 2019

  July 18 - #688 June 20 - #684 May 16 - #680 Apr 18 - #677 Mar 21 - #673 Feb 21 - #669   July 24 - #642
Series Offered 2.75% 15 Apr 2037 2.75% 15 Apr 2037 2.75% 15 Apr 2037 2.75% 15 Apr 2037 2.75% 15 Apr 2037 2.75% 15 Apr 2037   2.75% 15 Apr 2037
Total Amount Offered ($million) 150 150 150 150 200 200   150
Total Amount Allocated ($million) 150 150 150 150 200 200   150
Total Number of Bids Received 44 63 40 47 53 70   65
Total Amount of Bids Received ($million) 319 593 335 373 498 576   686
Total Number of Successful Bids 22 20 19 6 21 18   7
Highest Yield Accepted (%) 1.9800 1.8900 2.0950 2.3450 2.3850 2.6150   3.1750
Lowest Yield Accepted (%) 1.9600 1.8800 2.0600 2.3400 2.3700 2.5950   3.1700
Highest Yield Rejected (%) 2.1000 2.0500 2.1850 2.4450 2.4800 2.7000   3.2500
Lowest Yield Rejected (%) 1.9800 1.8900 2.0950 2.3450 2.3850 2.6150   3.1750
Weighted Average Accepted Yield (%) 1.9680 1.8851 2.0865 2.3423 2.3779 2.6079   3.1730
Weighted Average Rejected Yield (%) 2.0228 1.9121 2.1145 2.3763 2.4029 2.6370   3.1956
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* 39.1 17.9 75.0 78.7 27.3 86.7   98.9
Coverage ratio 2.1267 3.9533 2.2333 2.4867 2.4900 2.8800   4.5733

*Individual allotments may vary due to rounding.

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dumb question ... if anyone follows these posts..

Highest Yield Rejected (%) 2.1000

why would someone reject a higher bid ???

Late response but these are bonds, they have a fixed payout so a higher yield means that bidder offered a lower price for the bonds. Someone who offered a higher price for the bond would receive a lower yield because of the fixed payout. They would therefore reject higher yields and accept lower yields, because they are maximising the capital raised.