Issue date: 
Thursday, 22 May 2008

Embargoed until the conclusion of the Minister of Finance’s Budget speech

Philip Combes
Treasurer
New Zealand Debt Management Office

2008/09 Domestic Debt Programme

The New Zealand Debt Management Office (NZDMO) announced today details of the Government’s 2008/09 domestic debt programme.  The NZDMO intends to issue up to $3,400 million of bonds in 2008/09, including up to $341 million of infrastructure bonds.

The bond tender schedule for July to September 2008 will be released prior to the end of the current quarter.

Measures to Further Improve Bond Market Liquidity

Given ongoing concerns over the lack of liquidity in the government bond market, the NZDMO also announced the following initiatives aimed at increasing liquidity: 

the introduction of tap tenders from 1 July 2008; and
the introduction of reverse tap tenders with implementation as soon as possible after 1 July 2008 once detailed arrangements are finalised.

Tap tenders will enable the NZDMO to issue bonds at short notice when pockets of demand occur outside the regular tender schedule.
 
The introduction of reverse tap tenders will allow the NZDMO to buy back government bonds from time to time.  “Reverse tap tenders should reduce some of the pricing distortions that can occur when investors sell bonds back into the market,” said Mr. Combes.

Treasury Bill Programme

In addition to the three-month treasury bills currently offered each week, the NZDMO will re-introduce a one-year treasury bill from June 2008 to provide investors with a choice of short-term government securities.

ENDS

Treasury Contacts

Philip Combes | Treasurer
Tel: +64 4 917 6133

Andrew Turner | Head of Portfolio Management
Tel: +64 4 917 6071

Last updated: 
Friday, 8 July 2016