Govt bond yields fall to record low

A key long-term Government bond yield falls to a 28-year low following OCR review

Bonds

A key long-term Government bond yield falls to a 28-year low following OCR review

24th Apr 13, 12:20pm by David Chaston

Following the Reserve Bank's announcement that it's leaving the Official Cash Rate at 2.5%, New Zealand Government 10-year bond yields have fallen to a record low.

They touched 3.214% p.a., sharply lower than yesterday's 3.24% as reported by the Reserve Bank's monitoring of secondary market activity.

The previous low was 3.22% reached in July 2012.

This is 60 basis points below the 10-year swap rates currently quoted.

The data monitoring the NZ Government 10-year bond secondary market price series started in March 1985.

The next primary market auction for NZ Government bonds is by the Debt Management Office on Friday.

NZ Government bond rates

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Source: RBNZ

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4 Comments

by Andrew R | 24th Apr 13, 9:17pm 1366795029

Clearly another adverse effect of that Stalinist Albanian Labour Greens electricity market changes. Bloody democracy just doesn't cut the mustard.

by Gibber | 25th Apr 13, 6:37am 1366828624

...Stalinist Albanian...

hehehe

I suspect you are showing your age just a little. Berlin wall fell about a quarter of a century ago.

I suspect anyone who was born after 1979 would wonder what you were on about with the reference to "Stalinist Albanian". How about giving it a whirl on some 35 year olds and see how many understand the reference...

by Stephen Hulme | 26th Apr 13, 9:09am 1366924192

Will Local Authority officers and their appointed interest rate forecasting advisors stand up to endure the derision they so richly deserve if they and their council have encumbered ratepayers with debt hedging strategies that are forever forecasting higher economic growth and hence higher interest rates? Auckland would be a good place to start

by steven | 26th Apr 13, 9:36am 1366925792

Blinkers bite. Not just local authorities, look at the banks, John Key, CEO of NZ mint, RB, all dont seem to have a clue WTF is going on. Yet a basic undertstanding of Keynian zero bound trap would have shown this as a very probable outcome.

As PKrugman says those that listened to the WSJ editorial and not him would have a lost a lot of money in the last few years, this just gets re-inforced time and time again.

regards