Issue date: 
Tuesday, 3 May 2011

The New Zealand Debt Management Office (NZDMO) today announced that the 2010/11 domestic bond programme has been increased by $3.5 billion to a maximum of $20 billion.

This decision has been made for three key reasons:

  • The programme size is now much larger than the forecast cash deficit for 2010/11, enabling pre-funding in favourable market conditions.
  •  It reduces borrowing programmes in future years.
  •  It ensures that the market has continuity of supply by providing for average issuance of around $400 million a week for the next two months.

"Demand has been very strong in our tenders recently" said Mr. Philip Combes, NZDMO Treasurer. "We announced significant revisions to the bond programme on 30 March and 12 April but the extra supply has been easily absorbed by investors."

"Despite recent events, the rapid pace of bond issuance has built up our cash holdings to record levels. Consequently, it is most unlikely that there will be any further increases to this year's programme" he added.

The NZDMO will announce the bond programme for 2011/12 in conjunction with the Government's Budget on 19 May 2011.

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