New Zealand 3-Month Bill Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The New Zealand 3-Month Bill Auction measures the yield and demand for short-term government debt securities, specifically the 3-month Treasury bills issued by the New Zealand government. This auction primarily assesses the market's confidence in the country's fiscal health, influencing overall liquidity and interest rate expectations.

Frequency

The auction is typically held every week, with the results released on the same day as the auction. These reports present both the initial yields and the total amount of bids received.

Why Do Traders Care?

Traders monitor this event closely because the yields determined at the auction can directly influence interest rates on loans, mortgages, and other financial products. A higher-than-expected yield may indicate rising borrowing costs, impacting stock prices and currency valuations, while lower yields could suggest easing conditions conducive to credit growth.

What Is It Derived From?

The 3-Month Bill Auction results are derived from competitive bidding by various institutional investors, including banks, fund managers, and corporate treasurers. The final yield is determined through a process of allotment based on the bids submitted, which reflect current interest rate expectations and market demand for short-term government debt.

Description

The auction results include preliminary data that showcases early auction outcomes, but the final figures are usually released shortly after, providing a more accurate assessment of yield and demand dynamics. While this auction is generally viewed as a reflection of investor sentiment and short-term interest rate expectations, it can also signal broader economic trends and confidence in governmental financial stability.

Additional Notes

This indicator serves as a coincident economic measure, reflecting current market conditions and investor sentiment towards government debt. It can be compared against other debt instruments, such as longer-term bonds, to gauge the yield curve's shape and investor risk appetite.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for NZD, Bearish for Stocks. Lower than expected: Bearish for NZD, Bullish for Stocks. Dovish tone: Signaling lower interest rates or economic support is usually good for the NZD but bad for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise