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Intense interest in Government inflation linked tender sees only 6.8% of bids accepted; average weighted accepted yield 2.55% (previously 2.56%)

Bonds
Intense interest in Government inflation linked tender sees only 6.8% of bids accepted; average weighted accepted yield 2.55% (previously 2.56%)
13th Nov 14, 2:47pm by Craig Simpson

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

The coverage ratio is the highest it has been in a while as institutions search for a home for their funds.

Only 6.8% of all bids received were accepted, the lowest we have seen since May.

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 3.96% (previously 4.08% at time of last tender).

3.00% - 20 September 2030 Today # 530 Prior# 528 Prior # 524 Prior # 522 Prior #519
Series offered tender
November 13, 2014		 tender
October 9, 2014		 tender
August 7, 2014		 tender
July 10, 2014		 tender
May 8, 2014
Total Amount Offered ($million) 100 100 200 200 200
Total Amount Allocated ($million) 100 100 200 200 200
Total Number of Bids Received 44 51 53 37 54
Total Amount of Bids Received ($million) 382 262 490 525 565
Total Number of Successful Bids 3 21 19 5 4
Highest Yield Accepted (%) 2.550 2.570 2.690 2.840 2.810
Lowest Yield Accepted (%) 2.550 2.510 2.650 2.825 2.790
Highest Yield Rejected (%) 2.760 2.800 2.840 3.000 2.995
Lowest Yield Rejected (%) 2.550 2.570 2.690 2.840 2.815
Weighted Average Accepted Yield (%) 2.5500 2.5567 2.6742 2.8266 2.798
Weighted Average Rejected Yield (%) 2.6568 2.6437 2.7224 2.8668 2.8496
Amount Allotted at Highest Accepted Yield
as Percentage of Amount Bid at that Yield*		 96.2 93.5 43 61 100
Coverage Ratio 3.82 2.62 2.45 2.625 2.825

*Individual allotments may vary due to rounding.

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