Treasurer, New Zealand Debt Management Office
Domestic Debt Programme
The New Zealand Debt Management Office (NZDMO) announced today that it is ahead of its projected 2008/09 debt issuance track, having already completed $4.1 billion of the $4.5 billion programme announced in December.
To allow for continued regular issuance of around $150 million per week for the remainder of the fiscal year, the 2008/09 domestic bond programme has been increased by $1 billion to a maximum of $5.5 billion.
The 2009/10 domestic debt programme will be announced on 28 May 2009 in conjunction with the Government’s 2009 Budget.
Introduction of a New Long Bond
At the next bond tender on 7 May 2009, the NZDMO will introduce a new government bond with a maturity of 15 May 2021. The coupon rate on the bond will be announced with the tender composition on 6 May 2009.
Feedback from consultations with market participants supports the introduction of a new longer-maturity bond. The new bond will, over time, re-establish the ten-year point on the government bond curve.
In response to market requests, from 5 May 2009 the NZDMO will shorten the time between the close of tenders and the announcement of results to 30 minutes. In addition, all tenders for government securities will now be held later in the day to make tenders more accessible to Asian-based investors.
The new times for all bond and treasury bill tenders are:
Tender announced 11.30 am NZ time on business day prior to the tender
Tender close 2.00 pm NZ time
Tender results announced 2.30 pm NZ time
Tender information will continue to be announced on NZDMO’s Reuters (NZDMOINDEX) and Bloomberg pages (NZDM) and on the NZDMO web-site at www.nzdmo.govt.nz.
Phillip Combes | Treasurer
Tel: +64 4 917 6133
Andrew Turner | Head of Portfolio Management
Tel: +64 4 917 6071