New Zealand 6-Month Bill Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The New Zealand 6-Month Bill Auction measures the yield on short-term government debt securities, specifically 6-month Treasury bills, which reflect the government’s borrowing costs and investor sentiment regarding short-term interest rates. It primarily focuses on the demand for these bills and indicates overall economic conditions, investor confidence, and monetary policy expectations.

Frequency

This auction is conducted on a regular basis, typically every two weeks, and the results are released shortly after the auction concludes.

Why Do Traders Care?

Traders pay close attention to the outcomes of the 6-Month Bill Auction because higher-than-expected yields may indicate increasing interest rates, which can affect the New Zealand dollar (NZD), bonds, and equities. The results influence market perceptions about the Reserve Bank of New Zealand's monetary policy stance, making them crucial for economic forecasting and trading strategies.

What Is It Derived From?

The auction results are derived from competitive bids submitted by institutional and retail investors for the 6-month Treasury bills, with yields calculated based on the bid amounts and accepted rates. The auction employs a uniform price method where all successful bidders pay the same yield accepted, reflecting true market demand and expectations.

Description

The preliminary results of the auction show initial investor interest and demand, while subsequent revisions may occur based on final settlement figures. As a leading indicator, the yields from this auction serve as a gauge for market sentiments regarding short-term interest rates and economic conditions.

Additional Notes

The results of the 6-Month Bill Auction are considered a leading economic measure, providing insights into investor expectations on the trajectory of interest rates and overall economic health. These auctions are reflective of broader economic trends, including inflation expectations and government financing conditions.

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. Hawkish tone: Signaling higher interest rates or inflation concerns, is usually good for the NZD but bad for Stocks due to higher 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