Quiet week for NZ debt market

Westpac added NZ$100 million to its government-guaranteed July 2014 line to take outstandings to NZ$675 million. The line was opened only three weeks earlier but Westpac was able to achieve a 10 bps contraction on the credit spread applied to the top-up, with the new bonds being priced at 50 bps over swap.

Bank of New Zealand issued NZ$50 million of non-guaranteed FRNs with an October 2010 maturity. The issued was priced at 55 bps over bank bills.

The New Zealand Debt Management Office issued NZ$100 million, NZ$50 million and NZ$50 million of November 2011, April 2013 and May 2021 bonds respectively, on Thursday. Weighted average yields came in at 3.90 per cent, 4.87 per cent and 6.34 per cent and oversubscriptions were 2.9 times, 3.0 times and 2.0 times, respectively.