sign up log in
Want to go ad-free? Find out how, here.

More interest in latest Inflation Linked bond tender but 93% of the bids were unsuccessful; weighted average yield falls to 2.8% (3% last time)

Bonds
More interest in latest Inflation Linked bond tender but 93% of the bids were unsuccessful; weighted average yield falls to 2.8% (3% last time)

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

The coverage ratio was higher than the previous tender in April but still down on those ratio's seen in 2013.

With the latest CPI number comingĀ  in at 1.50% pa. this would give the IIB's an indication nominal yield of approxinately 4.30%.

The current yield on the NZ government bond with the longest duration (maturing in 2023) is approximately 4.30%.

3.00% - 20 September 2030 Today # 519 Prior #517 Prior #515 Prior #513
Series offered
tender
May 8, 2014
tender
Apr 10, 2014
tender
Mar 14, 2014
tender
Feb 13, 2014
Total Amount Offered ($million) 200 200 200 200
Total Amount Allocated ($million) 200 200 200 200
Total Number of Bids Received 54 74 67 56
Total Amount of Bids Received ($million) 565 445 451 473
Total Number of Successful Bids 4 34 25 17
Highest Yield Accepted (%) 2.810 3.030 2.950 3.020
Lowest Yield Accepted (%) 2.790 2.980 2.880 2.955
Highest Yield Rejected (%) 2.995 3.190 3.175 3.200
Lowest Yield Rejected (%) 2.815 3.030 2.950 3.020
Weighted Average Accepted Yield (%) 2.7980 3.0116 2.9257 2.9808
Weighted Average Rejected Yield (%) 2.8496 3.0704 2.9884 3.0751
Amount Allotted at Highest Accepted Yield
as Percentage of Amount Bid at that Yield*
100 19 16 25
Coverage Ratio 2.825 2.225 2.255 2.365

*Individual allotments may vary due to rounding.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.