In conjunction with the Half Year Economic and Fiscal Update 2019, the Treasury has updated the forecast core Crown borrowing programme.
The forecast 2019/20 New Zealand Government Bond programme is unchanged, at NZ$10 billion, from that published at the Budget Economic and Fiscal Update 2019. The forecast bond programmes for 2020/21 and 2021/22 are also unchanged, while the forecast bond programme for 2022/23 has been increased by NZ$2 billion, to NZ$8 billion.
The 2023/24 year has been added to the forecast period, with a NZ$6 billion bond programme.
Treasury Bills on issue at the end of 2019/20 are forecast to be NZ$3 billion. This forecast is unchanged from that published at the Budget Economic and Fiscal Update 2019.
Forecasts – New Zealand Government Bonds and Treasury Bills
Year ending 30 June (face value) |
2020 | 2021 | 2022 | 2023 | 2024 | Total |
---|---|---|---|---|---|---|
Gross NZGB issuance (NZ$ billion) |
10.0 | 10.0 | 8.0 | 8.0 | 6.0 | 42.0 |
NZGB maturities and repurchases (NZ$ billion) |
6.6 | 9.8 | 0.0 | 8.9 | 0.0 | 25.4 |
Net NZGB issuance (NZ$ billion) | 3.4 | 0.2 | 8.0 | -0.9 | 6.0 | 16.6 |
NZGBs on issue (NZ$ billion) |
74.0 | 74.1 | 82.1 | 81.2 | 87.2 | n/a |
NZGBs on issue (percent of GDP) | 23.5% | 22.4% | 23.5% | 22.2% | 22.7% | n/a |
Forecast T-Bills on issue (NZ$ billion) |
3 | 4 | 4 | 4 | 2 | n/a |
Further details
- Inflation-indexed bond issuance is expected to be around NZ$0.5 billion of the NZ$10 billion 2019/20 bond programme.
- There are plans to commence a repurchase programme of the 15 May 2021 nominal bond before 30 June 2020. Repurchase activities will be dependent on portfolio requirements and market conditions.
- Forecast NZGBs on issue are consistent with the Government’s commitment to maintain levels of NZGBs on issue at not less than 20 percent of GDP over time.
- A flexible approach to T-Bill issuance will continue to be taken in the annual borrowing programme. The forecasts show current expectations of how short-term cash liquidity needs will be met at fiscal year-end. However, the actual issuance of T-Bills may vary from forecast, based on actual short-term cash needs and an assessment of relative costs.
ENDS
Treasury Contacts
Kim Martin | Acting Director, Capital Markets
Tel: +64 4 890 7274
Matthew Collin | Head of Portfolio Management
+64 4 917 6015