Acting Director and Head of NZDMO
In conjunction with the Budget Economic and Fiscal Update 2017, the New Zealand Debt Management Office (NZDMO) has updated its New Zealand Government Bond (NZGB) programmes.
The 2017/18 NZGB programme is set at $7.0 billion, unchanged from that forecast at the Half Year Economic and Fiscal Update (HYEFU) 2016. Forecast NZGB programmes are a cumulative $1.0 billion higher compared with HYEFU 2016.
The Government recognises the importance of maintaining a sustainable NZGB market and intends to maintain levels of NZGBs on issue at not less than 20 percent of GDP over time.
Forecast NZGB issuance and outstandings
|Year ending 30 June (face value)||2017||2018||2019||2020||2021||Total|
|Gross NZGB issuance ($billion)||8.0||7.0||7.0||7.0||6.0||35.0|
|NZGB maturities and repurchases ($ billion)||4.8||11.5||6.5||7.3||11.1||41.1|
|Net NZGB issuance
|NZGBs on issue ($ billion)||75.4||70.9||71.5||71.2||66.1|
|NZGBs on issue (percent of GDP)||28.0%||25.2%||24.1%||22.8%||20.4%|
- Issuance for the remainder of 2016/17 is planned to be in line with the previously-announced Government Bond Tender Schedule for quarter ending 30 June 2017.
- Subject to market conditions, a new 20 April 2029 nominal bond is expected to be launched, via syndication, before 31 December 2017.
- Inflation-indexed bond issuance is expected to be around $1.0 billion of the $7.0 billion 2017/18 domestic bond programme.
- The repurchase programme of the 15 December 2017 nominal bond will continue through until 15 June 2017, after which the RBNZ will assume responsibility for repurchase operations.
- NZDMO plan to commence a repurchase programme of the 15 March 2019 nominal bond in 2017/18. NZDMO plans to repurchase up to $5.0 billion of these bonds in 2017/18, depending on portfolio requirements and market conditions.
Andrew Hagan | Acting Director and Head of NZDMO
Tel: +64 4 917 6937
Murray Jones | Head of Portfolio Management
Tel: +64 4 917 6075