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September 2035 Government inflation linked tender sees average yield at 2.4% up from last months 2.3%; increase in number of successful bids, breaking recent trend

Bonds
September 2035 Government inflation linked tender sees average yield at 2.4% up from last months 2.3%; increase in number of successful bids, breaking recent trend

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

2.50% - 20 September 2035 Today #554 Previous #552 Previous #549 Previous #546 Previous #543
Series offered tender
Oct. 8, 2015
tender
Sept. 17, 2015
tender
Aug. 20, 2015
tender
Jul. 16, 2015
tender
Jun.  4, 2015
Total Amount Offered ($mln) 100 100 100 100 100
Total Amount Allocated ($mln) 100 100 100 100 100
Total Number of Bids Received 55 46 50 60 99
Total Amount of Bids Received ($mln) 235 203 271 218 297
Total Number of Successful Bids 34 7 17 20 27
Highest Yield Accepted (%) 2.450 2.330 2.200 2.250 2.610
Lowest Yield Accepted (%) 2.370 2.300 2.160 2.200 2.570
Highest Yield Rejected (%) 2.580 2.470 2.400 2.420 2.810
Lowest Yield Rejected (%) 2.450 2.340 2.200 2.250 2.610
Weighted Average Accepted Yield (%) 2.4221 2.3127 2.1869 2.2281 2.5985
Weighted Average Rejected Yield (%) 2.4939 2.3953 2.2552 2.3086 2.6550
Amount Allotted at Highest Accepted Yield as Percentage of Amount Bid at that Yield* 70 100 6.3 66.7 58.8
Coverage Ratio 2.35 2.03 2.71 2.18 2.97

*Individual allotments may vary due to rounding.

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1 Comments

The rate lurched ~22.6 basis points higher against swaps. Is the proposed NZDMO $1-2 billion April 2033 funding operation having that much impact or are relative credit rating factors also an issue?

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