Latest bond tender of NZ$200 mln 2027's received bids for NZ$361mln; coverage ratio lowest in 6 months while weighted average yield jumps up 30bps

Latest bond tender of NZ$200 mln 2027's received bids for NZ$361mln; coverage ratio lowest in 6 months while weighted average yield jumps up 30bps

The New Zealand Debt Management Office has announced the results of NZ Govt Bond tender number 557 held on November 19, 2015.

Tender Date: Thursday, November 19, 2015

Bids close: 2.00pm

Results: From 2.05pm

Settlement Date: Tuesday, November 24, 2015

  Nov 19 - #557 Sept 11 - #551 Aug 13 - #548 Jul 9 - #545 Jun 12 - #544 May 14 - #542
Series Offered 4.50% 15 Apr 2027 4.50% 15 Apr 2027 4.50% 15 Apr 2027 4.50% 15 Apr 2027 4.50% 15 Apr 2027 4.50% 15 Apr 2027
Total Amount Offered ($million) 200 200 200 200 300 300
Total Amount Allocated ($million) 200 200 200 200 300 300
Total Number of Bids Received 41 47 34 49 136 81
Total Amount of Bids Received ($million) 361 437 365 677 1,123 660
Total Number of Successful Bids 24 24 8 2 32 51
Highest Yield Accepted (%) 3.640 3.290 3.290 3.385 3.890 3.790
Lowest Yield Accepted (%) 3.580 3.260 3.260 3.375 3.850 3.710
Highest Yield Rejected (%) 3.880 3.490 3.390 3.500 4.095 4.415
Lowest Yield Rejected (%) 3.640 3.290 3.290 3.395 3.890 3.790
Weighted Average Accepted Yield (%) 3.6057 3.2799 3.2676 3.3800 3.8702 3.7542
Weighted Average Rejected Yield (%) 3.7056 3.3142 3.3205 3.4236 3.9384 3.9738
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* 77.1 33.7 50 100 46.2 28.9
Coverage ratio 1.805 2.185 1.825 3.385 3.743 2.20

*Individual allotments may vary due to rounding.

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In view of the disquiet descending over global money markets in respect of negative swap spreads, it is important to note that the outright interpolated swap quote over yesterday's tender yield dropped to 4.62bps from 43.11bps at the previous tender.

3 Bizarre Things The Market Is Doing Right Now
http://blog.wallstreetsurvivor.com/2015/11/18/3-bizarre-things-the-marke...

These three instances of erratic market behavior all seem to indicate one thing: liquidity is drying up and people are starting to watch their money carefully. While there are some explanations for why these things are happening, no one’s 100% certain, they just know that something’s up.
It appears that the biggest players in financial markets are behaving like there’s not a whole lot of money out there. In fact, their actions seem to indicate that they believe they’re approaching the end of an economic cycle. We’ve had a very long bull market and clearly the anxieties of the Great Recession are still out there and manifesting themselves in odd ways throughout the market.

Caterpillar (CAT) posted a disastrous 16% decline in worldwide retail sales this morning, meaning that its sales have now fallen for 35 straight months. not only did US retail sales finally rollover and drop by 8% compared to prior year, but the rest of the world was a veritable bath of yellow blood:
http://davidstockmanscontracorner.com/it-is-different-this-time-now-come...