FXStreet (Delhi) – Imre Speizer, Research Analyst at Westpac, suggests that Wednesday’s tender of $105m LGFA bonds should find demand given the offering is small and the average duration is shorter than usual. Key Quotes “On offer are $15m 2020s, $50m 2021s, $15m 2023s, and $25m 2027s. These are currently priced at the following spreads over swap: 35bp, 40bp, 54bp and 70bp, respectively, and should be a reasonable guide to outcomes tomorrow. The equivalent spreads over NZGB are: 53bp, 61bp, 75bp and 86bp. Spread performance The multi-year decline in LGFA spreads (to NZGB ) ran out of steam in June amid a bout of global risk aversion. Global credit spreads rose and NZ credit spreads responded in lagged fashion. More recently, the plunge in NZ swap spreads during the past few weeks has catalysed volatility in LGFA spreads. The end result is higher spreads, which should attract investors at the tender this week.” For more information, read our latest forex news.