2023/24 New Zealand Government Bond Programme Set at NZ$34 Billion

In conjunction with the Budget Economic and Fiscal Update 2023, the Treasury has updated the forecast core Crown borrowing programme.

The forecast 2023/24 New Zealand Government Bond (NZGB) programme has been increased to NZ$34 billion, NZ$4 billion higher than that published at the Half Year Economic and Fiscal Update 2022. The forecast NZGB programmes for 2024/25, 2025/26, and 2026/27 have all been increased, by NZ$2 billion, NZ$10 billion and NZ$4 billion respectively.

The forecast for the 2022/23 year is unchanged, with a NZ$28 billion NZGB programme.  

Short-term borrowings (Treasury Bills (T-Bills) and Euro-Commercial Paper (ECP)) at the end of 2022/23 are forecast to be NZ$4.5 billion. At the end of each of the remaining fiscal years short-term borrowings are forecast to be NZ$9 billion.

Forecasts – New Zealand Government Bonds and short-term borrowings

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

Further Details

• Subject to market conditions, it is expected that a tap of the existing 14 April 2033 nominal NZGB will be issued via syndication prior to 31 December 2023. Further details will be announced in subsequent updates.
• Gross issuance into inflation-indexed bonds (IIB) is expected to be less than NZ$1 billion in 2023/24. Actual gross issuance of IIBs will be 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.
• The composition of short-term borrowings will include a minimum of US$1 billion of ECP and NZ$2 billion of T-Bills. The balance of short-term borrowings will be a mix of ECP and T-Bills, depending on relative cost and market dynamics.
• A flexible approach to short-term borrowing will continue to be taken in the annual borrowing programme. Actual issuance of short-term borrowings may vary from forecast, based on realised short-term cash needs. Intra-year, short-term borrowings on issue are expected to vary from NZ$6 billion to NZ$15 billion during normal market conditions.
• For nominal NZGB tenders effective 1 July 2023, a more flexible approach to tender issuance will be taken. In addition, from 1 July 2023, all NZGB, IIB and T-Bill tenders will open at 2pm and close at 2:30pm, with results announced from 2:35pm. For more information see ‘Advisory Note: Changes to Nominal New Zealand Government Bond Tender Issuance Approach’.

ENDS