The New Zealand Debt Management Office has announced the results of NZ Govt Bond tender number 740 held on Sep 24, 2020.
Tender Date: Thursday, Sep 24, 2020.
Bids close: 2.00pm
Results: From 2.05pm
Settlement Date: Tuesday, Sep 29, 2020
(1) Nominal Bonds - Series Offered : 0.5% 15 Apr 2024
| Sep 24 - #740 | Sep 10 - #738 | |
| Series Offered : 0.5% 15 April 2024 | ||
| Total Amount offered ($million) | 450 | 450 |
| Total Amount Allocated ($million) | 450 | 450 |
| Total Number of bids Received | 40 | 45 |
| Total Amount of bids Received ($million) | 1385 | 1505 |
| Total Number of Successful bids | 14 | 11 |
| Highest Yield Accepted (%) | -0.0450 | 0.0850 |
| Lowest Yield Accepted (%) | -0.0600 | 0.0725 |
| Highest Yield Rejected (%) | -0.0025 | 0.1200 |
| Lowest Yield Rejected (%) | -0.0450 | 0.0850 |
| Weighted Average Accepted Yield (%) | -0.0483 | 0.0825 |
| Weighted Average Rejected Yield (%) | -0.0267 | 0.0959 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount bid at that Yield* | 91.30 | 42.90 |
| Coverage ratio | 3.08 | 3.34 |
(2) Nominal Bonds - Series Offered : 1.50% 15 May 2031
| Sep 24 - #740 | Sep 10 - #738 | Aug 13 - #735 | Jul 30 - #733 | |
| Series Offered : 1.50% 15 May 2031 | ||||
| Total Amount Offered ($million) | 350 | 350 | 350 | 350 |
| Total Amount Allocated ($million) | 350 | 350 | 350 | 350 |
| Total Number of Bids Received | 77 | 55 | 51 | 60 |
| Total Amount of Bids Received ($million) | 850 | 698 | 944 | 993 |
| Total Number of Successful Bids | 29 | 26 | 14 | 27 |
| Highest Yield Accepted (%) | 0.4900 | 0.6350 | 0.6925 | 0.8150 |
| Lowest Yield Accepted (%) | 0.4750 | 0.6200 | 0.6750 | 0.7975 |
| Highest Yield Rejected (%) | 0.5750 | 0.6875 | 0.7150 | 0.8825 |
| Lowest Yield Rejected (%) | 0.4900 | 0.6350 | 0.6925 | 0.8150 |
| Weighted Average Accepted Yield (%) | 0.4821 | 0.6262 | 0.6874 | 0.8086 |
| Weighted Average Rejected Yield (%) | 0.5152 | 0.6475 | 0.7028 | 0.8272 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 27.80 | 10.50 | 20.00 | 3.70 |
| Coverage ratio | 2.43 | 1.99 | 2.69 | 2.84 |
(3) Series Offered : 2.75% 15 Apr 2037
| Sep 24 - #740 | Sep 10 - #735 | Aug 13 - #735 | Jun 25 - #729 | |
| Series Offered : 2.75% 15 Apr 2037 | ||||
| Total Amount Offered ($million) | 150 | 150 | 150 | 200 |
| Total Amount Allocated ($million) | 150 | 150 | 150 | 200 |
| Total Number of Bids Received | 41 | 33 | 39 | 47 |
| Total Amount of Bids Received ($million) | 548 | 228 | 410 | 465 |
| Total Number of Successful Bids | 1 | 17 | 9 | 17 |
| Highest Yield Accepted (%) | 0.9075 | 1.1275 | 1.0400 | 1.2675 |
| Lowest Yield Accepted (%) | 0.9075 | 1.0875 | 1.0325 | 1.2500 |
| Highest Yield Rejected (%) | 0.9850 | 1.1700 | 1.1250 | 1.4400 |
| Lowest Yield Rejected (%) | 0.9225 | 1.1300 | 1.0400 | 1.2675 |
| Weighted Average Accepted Yield (%) | 0.9075 | 1.1018 | 1.0341 | 1.2546 |
| Weighted Average Rejected Yield (%) | 0.9458 | 1.1468 | 1.0610 | 1.3078 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 100.00 | 100.00 | 66.70 | 14.30 |
| Coverage ratio | 3.65 | 1.52 | 2.73 | 2.32 |
(4) Inflation-Indexed Bonds - Series Offered : 2.50% 20 Sep 2040
| 2.50% - 20 September 2040 | #738 | #738 | #735 | #733 |
| Series offered | Sep 24, 2020 | Sep 10, 2020 | Aug 13, 2020 | Jul 30, 2020 |
| Total Amount Offered ($mln) | 50 | 50 | 50 | 50 |
| Total Amount Allocated ($mln) | 50 | 50 | 50 | 50 |
| Total Number of Bids Received | 37 | 27 | 31 | 34 |
| Total Amount of Bids Received ($mln) | 149 | 72 | 148 | 150 |
| Total Number of Successful Bids | 1 | 22 | 9 | 4 |
| Highest Yield Accepted (%) | -0.1125 | -0.0750 | 0.0675 | 0.3475 |
| Lowest Yield Accepted (%) | -0.1125 | -0.1650 | 0.0400 | 0.3400 |
| Highest Yield Rejected (%) | 0.0150 | -0.0550 | 0.1500 | 0.4600 |
| Lowest Yield Rejected (%) | -0.1100 | -0.0725 | 0.0675 | 0.3475 |
| Weighted Average Accepted Yield (%) | -0.1125 | -0.1032 | 0.0543 | 0.3471 |
| Weighted Average Rejected Yield (%) | -0.0444 | -0.0634 | 0.1061 | 0.3834 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 100.00 | 100.00 | 40.00 | 88.50 |
| Coverage Ratio | 2.98 | 1.44 | 2.96 | 3.00 |
*Individual allotments may vary due to rounding.
3 Comments
Number 1 is in need of correction - The Treasury on behalf of the Crown tendered $450m 0.5% 15/05/24s
The month is May not April.
Government receives $1.385b of bids for negative yielding $450m bond
Banks just cannot get enough government liabilities on their books, be it bonds or settlement cash. Same in US.
General balance sheet de-risking in play.
Another Record-Sized Auction As Treasury Sells $50BN in Tailing 7-Year Paper
Relevant Links:
https://alhambrapartners.com/2020/09/22/taking-you-the-feds-bank-reserv…
https://alhambrapartners.com/2020/09/21/ok-bank-reserves-lets-do-this-o…
https://alhambrapartners.com/2020/09/23/a-good-time-for-some-q-a-bank-r…
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