New uridashi issues outweigh maturing issues, but it may be one-off
3rd Jun 09, 12:29pm
There were NZ$606 million worth of new issues of uridashis and eurobonds in May, outweighing maturities of NZ$515 million, Westpac has reported. This was the first time since October last year that new issuance had exceeded maturities. These bonds are issued on wholesale international markets and fears about maturing uridashis and eurokiwis not being rolled over were a factor pushing the New Zealand dollar down over the last year. However, Westpac said May appeared an exception, particularly given just one issue (Rabobank's NZ$419 million Uridashi) dominated the issuance. "We caution against reading too much into this result, though, since the absolute volume of maturities in May was very low "“ only NZ$515 million (against the more typical NZ$1.5 billion monthly volume of recent months)," said Westpac senior market strategist Imre Speizer. "Next month, a more typical $1.1 billion matures, followed by the record $4.8 billion in July. Note that a good portion of the July rollovers should be announced from mid-June onwards, giving us some indication of the level of appetite for these assets."