New Zealand 1-Year Bill Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The New Zealand 1-Year Bill Auction measures the demand for government short-term debt securities, specifically Treasury bills with a one-year maturity. It primarily focuses on the prevailing interest rates and investor sentiment regarding credit risk and liquidity in the financial markets, with key indicators such as the yield at auction and the bid-to-cover ratio.

Frequency

This auction is held on a regular basis, specifically every month, and the results are typically reported shortly after the auction concludes, usually the same day.

Why Do Traders Care?

Traders closely monitor the results of the 1-Year Bill Auction as it reflects the health of the government’s financing conditions and investor confidence in the economic outlook. Strong demand can lead to lower yields, which can influence currency values like the NZD and affect stock market performance, while weak demand may signal increased risk and lead to higher yields.

What Is It Derived From?

The auction results are derived from bids submitted by institutional and retail investors looking to purchase government securities. The yield is calculated based on the total amount of bids relative to the amount of bills offered, incorporating factors such as the competitive and non-competitive bidding processes involved in the auction.

Description

The New Zealand 1-Year Bill Auction provides crucial insights into short-term interest rates and market liquidity. The auction's results can act as a barometer for broader economic sentiment and have implications for monetary policy, as they indicate how investors view the risk of holding government debt in the short term.

Additional Notes

This auction is considered a coincident economic indicator as it provides real-time data on the demand for government debt and reflects current market conditions. It can also be compared to longer-term bond auctions to gauge changing investor sentiment and economic trends.

Bullish or Bearish for Currency and Stocks

Higher than expected demand: Bullish for NZD, Bullish for Stocks. Lower than expected demand: Bearish for NZD, Bearish for Stocks.

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