The New Zealand Debt Management Office has announced the results of NZ Govt Bond tender number 720 held on April 16, 2020.
Tender Date: Thursday, April 22, 2020.
Bids close: 2.00pm
Results: From 2.05pm
Settlement Date: Tuesday, April 29, 2020
(1) Series Offered : 2.75% 15 Apr 2025
| Apr 23 - #721 | Mar 26 - #718 | Jan 30 - #714 | Jan 30 - #710 | Nov 28 - #705 | |
| Series Offered | 2.75% 15 April 2025 | 2.75% 15 April 2025 | 2.75% 15 April 2025 | 2.75% 15 April 2025 | 2.75% 15 April 2025 |
| Total Amount offered ($million) | 350 | 250 | 250 | 250 | 250 |
| Total Amount Allocated ($million) | 350 | 250 | 250 | 250 | 250 |
| Total Number of bids Received | 33 | 53 | 28 | 36 | 29 |
| Total Amount of bids Received ($million) | 1065 | 702 | 697 | 802 | 922 |
| Total Number of Successful bids | 15 | 20 | 9 | 10 | 13 |
| Highest Yield Accepted (%) | 0.4800 | 0.7750 | 0.9700 | 1.1150 | 1.0800 |
| Lowest Yield Accepted (%) | 0.4600 | 0.7450 | 0.9600 | 1.1100 | 1.0600 |
| Highest Yield Rejected (%) | 0.5500 | 0.8625 | 0.9950 | 1.1500 | 1.1300 |
| Lowest Yield Rejected (%) | 0.4800 | 0.7750 | 0.9700 | 1.1150 | 1.0800 |
| Weighted Average Accepted Yield (%) | 0.4743 | 0.7627 | 0.9668 | 1.1134 | 1.0715 |
| Weighted Average Rejected Yield (%) | 0.4900 | 0.8133 | 0.9801 | 1.1243 | 1.0897 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount bid at that Yield* | 28.60 | 16.00 | 66.70 | 69.40 | 36.8 |
| Coverage ratio | 3.04 | 2.8080 | 2.7880 | 3.2080 | 3.6880 |
(2) Series Offered : 4.50% 15 Apr 2027
| Apr 23 - #721 | |
| Series Offered | 4.50% 15 Apr 2027 |
| Total Amount Offered ($million) | 250 |
| Total Amount Allocated ($million) | 250 |
| Total Number of Bids Received | 44 |
| Total Amount of Bids Received ($million) | 1140 |
| Total Number of Successful Bids | 19 |
| Highest Yield Accepted (%) | 0.7100 |
| Lowest Yield Accepted (%) | 0.6925 |
| Highest Yield Rejected (%) | 0.7400 |
| Lowest Yield Rejected (%) | 0.7100 |
| Weighted Average Accepted Yield (%) | 0.7034 |
| Weighted Average Rejected Yield (%) | 0.7185 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 5.00 |
| Coverage ratio | 4.56 |
(3) Series Offered : 3.50% 15 Apr 2033
| Apr 23 - #721 | |
| Series Offered | 3.50% 14 Apr 2027 |
| Total Amount Offered ($million) | 200 |
| Total Amount Allocated ($million) | 200 |
| Total Number of Bids Received | 43 |
| Total Amount of Bids Received ($million) | 396 |
| Total Number of Successful Bids | 21 |
| Highest Yield Accepted (%) | 1.2075 |
| Lowest Yield Accepted (%) | 1.1850 |
| Highest Yield Rejected (%) | 1.2500 |
| Lowest Yield Rejected (%) | 1.2075 |
| Weighted Average Accepted Yield (%) | 1.1939 |
| Weighted Average Rejected Yield (%) | 1.2224 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 50.00 |
| Coverage ratio | 1.98 |
*Individual allotments may vary due to rounding.
1 Comments
Just trying to understand the mechanics of how this works.
Will the actual cash inflow to the Treasury on these issues be higher than the face value of the issue?
For e.g. in the '4.50% 15 Apr 2027' series offered above the 'Weighted Average Accepted Yield (%)' is 0.7034% while coupon is 4.5%. So does that mean the buyer is paying a higher price such that it brings down his expected yield on the bond from the coupon cash flows of 4.5% down to a yield of 0.7034%?
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