Smallest Government inflation linked tender in 2014 still draws plenty of support with the average weighted accepted yield recorded at 2.56% (previously 2.67%)

Smallest Government inflation linked tender in 2014 still draws plenty of support with the average weighted accepted yield recorded at 2.56% (previously 2.67%)

The results from the latest inflation indexed bond offer by the Treasury's Debt Management Office have been released.

The coverage ratio was marginally down on the July tender and again a majority of bids were unsuccessful.

The current yield on the NZ Govt bond with the longest duration and which is quoted on the NZDX (i.e. matures in 2023) is approximately 4.08%.

The difference between the yield on the NZ Govt bond maturing in 2023 and the average weighted inflation index yield in today's tender is approximately 1.52% which is just below the current NZ CPI of 1.60%.

3.00% - 20 September 2030 Today # 528 Prior # 524 Prior # 522 Prior #519 Prior #517
Series offered tender
October 9, 2014
tender
August 7, 2014
tender
July 10, 2014
tender
May 8, 2014
tender
Apr 10, 2014
Total Amount Offered ($million) 100 200 200 200 200
Total Amount Allocated ($million) 100 200 200 200 200
Total Number of Bids Received 51 53 37 54 74
Total Amount of Bids Received ($million) 262 490 525 565 445
Total Number of Successful Bids 21 19 5 4 34
Highest Yield Accepted (%) 2.570 2.690 2.840 2.810 3.030
Lowest Yield Accepted (%) 2.510 2.650 2.825 2.790 2.980
Highest Yield Rejected (%) 2.800 2.840 3.000 2.995 3.190
Lowest Yield Rejected (%) 2.570 2.690 2.840 2.815 3.030
Weighted Average Accepted Yield (%) 2.5567 2.6742 2.8266 2.798 3.0116
Weighted Average Rejected Yield (%) 2.6437 2.7224 2.8668 2.8496 3.0704
Amount Allotted at Highest Accepted Yield
as Percentage of Amount Bid at that Yield*
93.5 43 61 100 19
Coverage Ratio 2.62 2.45 2.625 2.825 2.225

*Individual allotments may vary due to rounding.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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