NZ domestic Government bond programme increased

Wednesday 30th March 2011

The Government will sell more bonds in the current financial year than previously signalled.

The New Zealand Debt Management Office, which manages the government's debt portfolio, said today that the 2010/11 domestic bond programme has been increased by $1.5 billion to a maximum of $15 billion.

The office, which conducts regular sales by tender of New Zealand government bonds, has been selling more bonds than needed, citing strong demand for the bonds sold in New Zealand as a reason.

The increase in the domestic bond programme total would allow it to continue regular bond tenders, the office said.

"This announcement reflects the fact that the NZDMO is significantly ahead of its projected 2010/11 debt issuance track, having already completed $13.2 billion of the $13.5 billion programme announced in December," the office said.

The office has previously said that Australian and New Zealand bond tenders had been going very well as there was a clear differences between how New Zealand and Australia were regarded in the market compared to peripheral European countries.

The size of the domestic bond programme for next year will be announced in the budget on May 19.

NZPA

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