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$3 billion. This forecast is unchanged from that published at the Budget Economic and Fiscal Update 2019.
Forecasts – New Zealand Government Bonds and Treasury Bills
|Year ending 30 June
|Gross NZGB issuance
NZGB maturities and repurchases (NZ$ billion)
|Net NZGB issuance (NZ$ billion)||3.4||0.2||8.0||-0.9||6.0||16.6|
NZGBs on issue (NZ$ billion)
|NZGBs on issue (percent of GDP)||23.5%||22.4%||23.5%||22.2%||22.7%||n/a|
|Forecast T-Bills on issue
- 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.
Kim Martin | Acting Director, Capital Markets
Tel: +64 4 890 7274
Matthew Collin | Head of Portfolio Management
+64 4 917 6015