NZGBS: Off Cheaps Ahead Of Pricing Of Syndication, Little Reaction After

Looking at the details of the syndication of the new NZGB May-30, the NZ$4.0bn issued was vs. a potential issuance size of NZ$3-5bn, so was in the middle of the range (with over NZ$8.5bn of bids received), while the pricing of 4bp over the 20 April 2029 nominal bond was vs. initial guidance of 2-5bp, so a touch above the midpoint on that front. Perhaps the Treasury chose not to issue the full NZ$5bn to keep the pricing off of the cheap end of the range. Little reaction in NZGBs in the wake of the pricing of the syndication, with the space already pulling away from session cheaps over the last 30-40 minutes. That came after the space cheapened on the lead from U.S. Tsy trade on Monday and didn't react to a late NY move away from cheaps in U.S. Tsys.