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Demand for NZ debt maintained

25 May 2009 5:01PM
The New Zealand Debt Management Office continued adding to its new May 2021 line, with a further NZ$100 million of bonds sold. This time the average yield was at a new high of 6.21 per cent and the offer was almost four times oversubscribed. December 2017 bonds were also offered, with NZ$50 million being sold at an average yield of 5.52 per cent. Again, the offer was almost four times oversubscribed.The New Zealand government will release its 2009-10 budget on Thursday and with this the NZDMO will announce it 2009-10 debt program. More on this next week.The Australian Office of Financial Management sold $699 million of April 2020 bonds on Wednesday, with the average yield coming in at 5.22 per cent. The offer was three times oversubscribed. On Friday, $700 million of June 2011 bonds were sold at an average yield of 3.73 per cent and were 5.7 times oversubscribed, proving again the popularity of short-dated bonds.Resimac priced its AOFM-backed, RESIMAC Premier Series 2009-1, RMBS issue on Thursday. The issue was increased in size to $550 million from the originally specified $400 million. The largest increase was in the Class A3 tranche, from $301 million to $435 million, all of which was taken up by AOFM. AOFM also acquired $10 million of the Class A2 tranche and all of the Class AB tranche. Only four investors other than AOFM bought securities, according to a Resimac media release.In all, the issue comprised: $27.5 million of 'A-1+' rated Class A-1 notes, priced at 70 bps over one month bank bills; $55 million of 'AAA' rated Class A-2 notes, priced at 100 bps over; $435 million of 'AAA' rated Class A-3 notes, priced at 140 bps over; and $13.8 million of 'AAA' rated Class AB notes, priced at 170 bps over. The weighted average lives of the tranches are 0.15, 0.48, 2.9 and 4.07 years, respectively. Pricing on the $11.8 million Class B-1 tranche and $6.9 million Class B-2 tranche was not disclosed.Lastly, New South Wales Treasury Corporation sold $100 million of November 2025 capital-indexed bonds at an average real yield of 3.82 per cent, to take outstandings to $1.0 billion. The offer was 1.68 times oversubscribed.

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