NZDMO sees oversubscriptions of more than four times

New Zealand's Debt Management Office did not cancel its bond tenders on Thursday. Apparently NZDMO was not having any problems balancing its books for the end of the financial year.

NZDMO continued to expand the new May 2021 line, this time offering NZ$200 million of bonds, the largest yet. The bonds were sold at a weighted average yield of 6.39 per cent and attracted bids for more than four times the volume of stock on offer.

Similarly, NZ$50 million of November 2011 bonds attracted bids of more than four times this amount. The stock was sold at a weighted average yield of 3.74 per cent.

Bank of New Zealand, a subsidiary of NAB, added NZ$415 million to its government-guaranteed, February 2014, line on Friday. The increase takes outstandings to NZ$700 million and was priced 20 basis points tighter than the original issue, at 60 bps over swap. Interestingly, this remains the only government-guaranteed bank bond issue in the New Zealand market.