BusinessDesk: Investors bid for $1.48 bln of bills in first NZ government sale of 2012

BusinessDesk: Investors bid for $1.48 bln of bills in first NZ government sale of 2012

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.

(BusinessDesk)

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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  

Are you sure about this ?

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. 

Too right they did. NZD 1.080 billion Treasury bills mature tomorrow.  

 

 

The news just gets better on the government debt front

NZDMO paid down NZD 1.4370 billion over the 2011 calendar 4th Quarter.

Hopefully, Mr English is attempting to extricate his government from our lives, unlike our American cousins.

And yet this US profligacy is the very source of our credit wrapped bank funding for domestic mortgage lending.