NZ gets $2.9 billion of bids for $900m of bonds in tender

NZ's Debt Management Office got about $2.9 billion of bids for the $900 million of government bonds sold in a tender today, underlining the appeal of the nation's relatively attractive yields.

BUSINESSDESK: New Zealand’s Debt Management Office got about $2.9 billion of bids for the $900 million of government bonds sold in a tender today, underlining the appeal of the nation’s relatively attractive yields.

The DMO sold $300m of 6% bonds maturing on December 15, 2017, bonds at a weighted average yield of 3.33%.

It sold $300m of 6%, March 15, 2019, bonds at a yield of 3.54% and $300m of 5.5% April 15, 2023, bonds at a yield of 4.01%.

The 2017 bonds were the most popular, receiving bids of $1.58 billion, while the 2019s garnered $802m and the 2023s attracted $535m of bids.

The tender was the largest since September.

The DMO has a target of $13.5 billion of debt sales this fiscal year but has slipped behind the run rate needed to meet that total by June 30.

The DMO has nine more sales scheduled before June 30.