New Zealand Bond Bids Reach Thirteen-Year Auction Peak Arabian Post
New Zealand Debt Management received NZ$932 million in bids for NZ$125 million of bonds maturing in April 2037, producing a coverage ratio of 7.456, official tender results showed. The ratio, which measures bids against securities offered, was the highest recorded for a New Zealand government bond auction since February 2013.
The unusually strong bidding accompanied a decline in borrowing costs. The weighted average accepted yield on the April 2037 bonds was 4.7341%, with successful bids ranging from 4.7300% to 4.7375%. Yields move inversely to bond prices, meaning stronger demand can help the government raise money on more favourable terms.
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