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Latest bond tender of NZ$200 mln received bids for $412 mln with weighted average accepted yield of 1.0971% (versus 1.3768% previously)

Bonds
Latest bond tender of NZ$200 mln received bids for $412 mln with weighted average accepted yield of 1.0971% (versus 1.3768% previously)

The New Zealand Debt Management Office (NZDMO) auctioned $200 million 20 September 2025 inflation-indexed New Zealand Government bonds today with a successful weighted average yield of 1.0971%.

Inflation is currently running at 0.95% which would mean a nominal yield of 2.0471%.

By comparison the yield on 10-year NZ government stock which is not inflation adjusted is trading at approximately 3.17% p.a.

This latest tender was also over-subscribed with a coverage ratio of 2.06 times.

Details of the tender follows.

Tender Date: Thu, 2 May 2013

Bids close: 2.00pm

Results: From 2.05pm

Settlement Date: Tue, 7 May 2013

Series Offered 2.00% 20 Sept 2025
Total Amount Offered ($million) 200
Total Amount Allocated ($million) 200
Total Number of Bids Received 40
Total Amount of Bids Received ($million) 412
Total Number of Successful Bids 25
Highest Yield Accepted (%) 1.120
Lowest Yield Accepted (%) 1.080
Highest Yield Rejected (%) 1.200
Lowest Yield Rejected (%) 1.120
Weighted Average Accepted Yield (%) 1.0971
Weighted Average Rejected Yield (%) 1.1574
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* 24
Coverage Ratio 2.06

*Individual allotments may vary due to rounding.

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1 Comments

Well the cost of government finace hardly went through the roof today because of the MoM energy proposals set out by the opposition parties - I wish the neocons would stop "crying wolf."

 

The latest tender yield is more than quarter of a percent (27.97bps) below the previous tender for the same issue a month back. These are big chunky dollar BPV moves.

 

The NZDMO could be accused of being negligent for getting such a poor price for the origination issue. I bet the Nat's supporters won't be preparing to drop that bombshell.

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