2022/23 New Zealand Government Bond Programme Increased to NZ$28 Billion

In conjunction with the Half Year Economic and Fiscal Update 2022, the Treasury has updated the forecast core Crown borrowing programme.

The forecast 2022/23 New Zealand Government Bond (NZGB) programme has been increased to NZ$28 billion, NZ$3 billion higher than that published at the Budget Economic and Fiscal Update 2022. The forecast NZGB programmes for 2023/24 and 2024/25 have been increased by NZ$5 billion each year, to NZ$30 billion, while the 2025/26 NZGB programme has been increased by NZ$5 billion to NZ$20 billion.

The 2026/27 year has been added to the forecast period, with a NZ$20 billion NZGB programme.

Treasury Bills (T-Bills) on issue at the end of 2022/23 are forecast to be NZ$3 billion. Forecast T‑Bills on issue are unchanged at NZ$3 billion, at the end of each of the remaining forecast years.

Forecasts – New Zealand Government Bonds and Treasury Bills

^{1. Includes repurchases of bonds from the Reserve Bank of New Zealand held under the Large Scale Asset Purchase programme.}

Further Details

• The decision by the Government that Kāinga Ora’s future financing requirements will be met by loans from New Zealand Debt Management, rather than private markets, has contributed NZ$13.8 billion in additional funding requirements across the forecast period.
• Subject to market conditions, it is expected that a 2030 maturity nominal NZGB will be issued via syndication prior to 30 June 2023.
• Gross issuance into Inflation-indexed bonds (IIB) is expected to be between NZ$2.5 billion and NZ$3 billion in 2022/23, subject to market conditions and indicated demand from market participants.
• There are plans to commence a repurchase programme of the 15 May 2024 nominal bond prior to maturity. Repurchase activities will be dependent on portfolio requirements and market conditions.
• A flexible approach to T-Bill issuance will continue to be taken in the annual borrowing programme. Actual issuance of T-Bills may vary from forecast, based on actual short-term cash needs and an assessment of relative costs. Intra-year, T-Bills on issue are expected to vary from NZ$3 billion to NZ$10 billion during normal market conditions.
• As previously announced, the January 2023 monthly tender schedule will published at 8am (NZT) on 15 December 2022.

ENDS