The results from the latest inflation indexed bond offer by the Treasury's Debt Management Office have been released.
The coverage ratio was down again on the August tender but this time a majority of bids were successful.
The current yield on the NZ Govt bond with the longest duration and which is quoted on the NZDX (i.e. matures in 2023) is approximately 4.28%.
The difference between the yield on the NZ Govt bond maturing in 2023 and the average weighted inflation index yield in today's tender is approximately 1.54%. Annual CPI as at June 2013 was +1.6%.
Settlement date of these linkers is September 17, 2014.
| 3.00% - 20 September 2030 | Today # 526 | Today # 524 | Prior # 522 | Prior #519 |
| Series offered |
tender Sept 12, 2014 |
tender August 7, 2014 |
tender July 10, 2014 |
tender May 8, 2014 |
| Total Amount Offered ($million) | 200 | 200 | 200 | 200 |
| Total Amount Allocated ($million) | 200 | 200 | 200 | 200 |
| Total Number of Bids Received | 43 | 53 | 37 | 54 |
| Total Amount of Bids Received ($million) | 411 | 490 | 525 | 565 |
| Total Number of Successful Bids | 30 | 19 | 5 | 4 |
| Highest Yield Accepted (%) | 2.690 | 2.690 | 2.840 | 2.810 |
| Lowest Yield Accepted (%) | 2.535 | 2.650 | 2.825 | 2.790 |
| Highest Yield Rejected (%) | 2.970 | 2.840 | 3.000 | 2.995 |
| Lowest Yield Rejected (%) | 2.690 | 2.690 | 2.840 | 2.815 |
| Weighted Average Accepted Yield (%) | 2.6136 | 2.6742 | 2.8266 | 2.798 |
| Weighted Average Rejected Yield (%) | 2.7626 | 2.7224 | 2.8668 | 2.8496 |
|
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* |
82.1 | 43 | 61 | 100 |
| Coverage Ratio | 2.055 | 2.45 | 2.625 | 2.825 |
*Individual allotments may vary due to rounding.
1 Comments
The current yield on the NZ Govt bond with the longest duration and which is quoted on the NZDX (i.e. matures in 2023) is approximately 4.28%.
That's a bit naughty since there is a 4.50% 15/04/2027 issue which was quoted last night @ 4.40% yield as part of the NZX/ANZ government bond indices disclosure package.
Nonetheless, the Germans can be relied upon to give up the data for free. View here
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