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NZ government bond programme increases

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 28 NZPA - The Government will continue selling bonds in coming months after increasing the size of this year's domestic bond programme by $2 billion.

The New Zealand Debt Management Office (NZDMO) has already sold all the bonds it intended to in the year to June 30, completing $10.47 billion of the $10.5 billion domestic bond programme announced in December.

The announcement of an increase in the 2009/10 programme by $2 billion to $12.5 billion means the Government can continue selling bonds in its weekly tenders for the rest of this financial year while there is good demand for them.

"This increase to the programme allows us to continue regular issuance for the remainder of the fiscal year in line with market demand," said Philip Combes, treasurer of the NZDMO.

The size of the bond tender programme for the year to June 30, 2011 will be announced in the budget on May 20.

Andrew Turner, head of portfolio management, said the move reflected changes in funding requirements and that the Government wanted to have bonds available to sell to investors while there was good demand.

If it had not increased the programme tenders could have stopped until the new financial year.

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