The New Zealand Debt Management Office’s first bill auction for the year attracted bids worth almost three times the value of $500 million of new short-term debt sold today.
Institutional investors offered 32 bids totalling some $1.48 billion at the sale of 98-, 175- and 364-day bills today. Nine bids were successful, according to the DMO’s website.
The department sold $300 million of 98-day debt at an average yield of 2.27 percent to two winning bidders, some two basis points higher than the average successful yield in the DMO’s last auction in December for similar terms.
The $100 million of 175-day term debt attracted nine bids worth $321 million with five successful at an average successful yield of $2.38 percent. The $100 million of 364-day debt offered had 10 bids totalling $314 million with two winners at an average yield of 2.48 percent.
The yield on New Zealand three-month bills rose 2 basis points to 2.76 percent in trading today, while the yields on six-month and one-year bills were unchanged at 2.62 percent and 2.54 percent respectively.
The DMO will hold its sale of bonds for the year on Thursday.
The government reined in borrowing this fiscal year with $13.5 billion flagged for the year ended June 30 after tapping debt markets for a record $20 billion in 2011 to cover the impact of Canterbury’s spate of earthquakes.