NZDM decreases 2020/21 issuance programme by NZ$10 billion

On 16 September, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) decreased its New Zealand government bond (NZGB) programme for the 2020/21 financial year to NZ$50 billion (US$33.5 billion) from the NZ$60 billion announced at the Budget Economic and Fiscal Update 2020 in May.

NZDM made the revision following the release of the New Zealand government’s Pre-election Economic and Fiscal Update 2020. It has also revised down its forecast bond programme for 2021/22 by NZ$5 billion and increased its 2023/24 forecast bond programme by NZ$5 billion. The 2022/23 forecast bond programme remains unchanged.

NZGBs and treasury bills forecast

Gross NZGB issuance (NZ$bn) 29 50 35 35 35
NZGB maturities and repurchases (NZ$bn) 5.4 11.1 0 15.7 12.5
Net NZGB issuance (NZ$bn) 23.6 38.9 35 19.3 22.6
NZGBs outstanding (NZ$bn) 94.2 133.1 168.1 187.4 210
NZGBs outstanding (% of GDP) 31 44 52 55 58
Forecast T-Bills on issue (NZ$bn) 11.9 10 10 10 10

Source: New Zealand Debt Management 16 September 2020

NZDM revealed plans for a new May 2028 NZGB to be issued via syndication this calendar year. “To provide additional flexibility, the expected week of the launch will not be announced in the monthly tender schedule media statement. Instead, the expected week of the launch will be announced alongside the announcement of the syndicate panel,” the statement says.

Expected issuance of inflation-indexed bonds remains between NZ$1-2 billion in 2020/21.