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NZGBS: Yields Lower After A Solid Takedown of Weekly Supply

BONDS

NZGBs are stronger after this week’s NZ$400 supply shows solid demand, particularly for the May-51 bond. While the cover ratios for the May-28 and Apr-33 bonds, respectively 3.09 and 2.91, were lower than their previous auctions on April 27, they remained comfortably around 3.00x.

  • The cover ratio for the May-51 bond was a stellar 4.42x versus 3.34 at its previous showing.
  • The cash lines in the auction are 3-5bp lower in post-auction trading.

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