The New Zealand Debt Management Office (NZDMO) has announced the results of NZ Govt Bond tender number 910 held on 4 Jul 2024.
Tender Date: Thursday, 4 Jul 2024.
Bids close: 2.30pm
Results: From 2.35pm
Settlement Date: Tuesday, 9 Jul 2024
*Note, the NZDMO sought $100 million for an issue of 17-year bonds, but secured only $94 million. See table 3 below. It's the first government bond tender to fail since February last year.
"The tender failed to complete, which hasn’t happened since Feb 2023. NZGBs have cheapened over the past few months relative to swaps, such that longer maturities now yield higher than swap rates. In part, that is due to increases in projected issuance, a feature not unique to NZ (e.g. US). Today’s tender result follows two weak tenders, so it’s not a complete surprise. Markets will cheapen NZGBs in response, but at some point, the spreads to swaps will attract investors, " Imre Speizer, Head of NZ Markets Strategy at Westpac Institutional Bank, says.
(1) Nominal Bonds - Series Offered : 1.50% 15 May 2031
| Jul 4 #910 | Jun 20 #908 | May 31 #906 | May 16 #904 | |
| Series Offered : 1.50% 15 May 2031 | ||||
| Total Amount Offered ($million) | 225 | 250 | 275 | 250 |
| Total Amount Allocated ($million) | 225 | 250 | 275 | 250 |
| Total Number of Bids Received | 22 | 25 | 24 | 29 |
| Total Amount of Bids Received ($million) | 242 | 311 | 675 | 615 |
| Total Number of Successful Bids | 21 | 20 | 1 | 15 |
| Highest Yield Accepted (%) | 4.6000 | 4.4775 | 4.6725 | 4.4650 |
| Lowest Yield Accepted (%) | 4.5500 | 4.4375 | 4.6725 | 4.4450 |
| Highest Yield Rejected (%) | 4.6200 | 4.5350 | 4.7525 | 4.5000 |
| Lowest Yield Rejected (%) | 4.6000 | 4.4775 | 4.6875 | 4.4675 |
| Weighted Average Accepted Yield (%) | 4.5786 | 4.4576 | 4.6725 | 4.4559 |
| Weighted Average Rejected Yield (%) | 4.6118 | 4.4986 | 4.7099 | 4.4801 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 72.00 | 50.00 | 100.00 | 100.00 |
| Coverage ratio | 1.07 | 1.24 | 2.45 | 2.46 |
(2) Series Offered : 4.25% 15 May 2034
| Jul 4 #910 | Jun 20 #908 | May 31 #906 | May 16 #904 | |
| Series Offered : 4.25% 15 May 2034 | ||||
| Total Amount Offered ($million) | 175 | 200 | 175 | 250 |
| Total Amount Allocated ($million) | 175 | 200 | 175 | 250 |
| Total Number of Bids Received | 29 | 26 | 29 | 25 |
| Total Amount of Bids Received ($million) | 314 | 371 | 455 | 355 |
| Total Number of Successful Bids | 15 | 15 | 2 | 22 |
| Highest Yield Accepted (%) | 4.7200 | 4.5700 | 4.8075 | 4.5900 |
| Lowest Yield Accepted (%) | 4.6900 | 4.5550 | 4.8075 | 4.5550 |
| Highest Yield Rejected (%) | 4.7625 | 4.6600 | 4.9125 | 4.6200 |
| Lowest Yield Rejected (%) | 4.7200 | 4.5700 | 4.8075 | 4.5900 |
| Weighted Average Accepted Yield (%) | 4.7049 | 4.5624 | 4.8075 | 4.5684 |
| Weighted Average Rejected Yield (%) | 4.7338 | 4.5935 | 4.8383 | 4.5993 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 75.00 | 82.90 | 87.50 | 22.20 |
| Coverage ratio | 1.79 | 1.86 | 2.60 | 1.42 |
(3) Series Offered : 1.75% 15 May 2041
| Jul 4 #910 | May 23 #905 | May 9 #903 | Mar 7 #895 | |
| Series Offered : 1.75% 15 May 2041 | ||||
| Total Amount Offered ($million) | 100 | 75 | 25 | 50 |
| Total Amount Allocated ($million) | 94 | 75 | 25 | 50 |
| Total Number of Bids Received | 17 | 18 | 17 | 18 |
| Total Amount of Bids Received ($million) | 94 | 150 | 85 | 155 |
| Total Number of Successful Bids | 17 | 5 | 6 | 6 |
| Highest Yield Accepted (%) | 5.1100 | 4.9775 | 5.0300 | 4.8425 |
| Lowest Yield Accepted (%) | 5.0150 | 4.9700 | 5.0200 | 4.8275 |
| Highest Yield Rejected (%) | 5.0300 | 5.0900 | 4.9000 | |
| Lowest Yield Rejected (%) | 4.9800 | 5.0300 | 4.8475 | |
| Weighted Average Accepted Yield (%) | 4.8718 | 5.0265 | 4.8348 | |
| Weighted Average Rejected Yield (%) | 5.0529 | 4.9943 | 5.0504 | 4.8696 |
| Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* | 100.00 | 100.00 | 66.70 | 100.00 |
| Coverage ratio | 0.94 | 2.00 | 3.40 | 3.10 |
*Individual allotments may vary due to rounding.
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