Buoyant Auctions Boost Sovereign Bonds in New Zealand, Australia

New Zealand and Australian sovereign bonds extended a rally after debt auctions in the two nations drew robust demand.

New Zealand’s 10-year yield fell seven basis points to 4.11% after the sale of May 2034 debt drew bids for 6.23 times the amount of offer, the most since this tenor was first auctioned in February 2023. The yield on similar-maturity Australian bonds dropped four basis points to 4.32% after the country sold two inflation-indexed securities.