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.
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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