NZDMO demand ok

Philip Bayley
The New Zealand Debt Management Office continued to build its May 2012 line, adding another NZ$100 million on Thursday.

The issue was 2.7 times oversubscribed and achieved a weighted average yield of 6.57 per cent. NZ$50 million of April 2013 bonds were also at a weighted average yield of 4.81 per cent and attracted over subscriptions of 2.2 times.

In the corporate bond market, Westpac issued NZ$50 million of non-guaranteed, September 2010 FRNS at 80 bps over bank bills. This is in line with where ANZ National priced an issue for the same term to maturity in April.

Kommunalbanken issued NZ$100 million of five-year kauri bonds priced at 65 bps over swap and NZGB+114 bps.