NZ Govt Bond Tender #721; Tender Date 23 April 2020

NZ Govt Bond Tender #721; Tender Date 23 April 2020

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.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.

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%?