28 May 2009
MEDIA STATEMENT
Embargoed until 2pm
Philip Combes
Treasurer
New Zealand Debt Management Office
2009/10 DOMESTIC DEBT PROGRAMME
The New Zealand Debt Management Office (“NZDMO”) announced today details of the Government’s 2009/10 domestic debt
programme.
Bond Issuance
The NZDMO intends to issue up to $8.5 billion of government bonds in 2009/10. To meet this funding requirement, the
NZDMO expects to offer around $150 million to $200 million of bonds per week through a combination of regular weekly
tenders and occasional tap tenders.
The Budget forecasts include bond programmes of $11.5 billion in 2010/11 and $15 billion in the 2011/12 and 2012/13
fiscal years.
The regular bond tender schedule for July to September 2009 will be released in late June.
Bond Switches and Tender Oversubscriptions
The NZDMO will shortly undertake market consultation on some new initiatives to improve bond market liquidity. These
initiatives will initially include the use of bond switches and a review of tender oversubscription rules.
Treasury Bills
Since late December 2008, treasury bill issuance has increased from around $200 million to $500 million per week in
three and six-month maturities. The one-year treasury bill may also be reintroduced if there is market demand and if it
is cost effective to do so.
Given current demand, the NZDMO expects to continue issuing a combination of maturities totalling around $500 million of
treasury bills per week. Ongoing issuance volumes will depend on investor interest and NZDMO’s short-term funding
requirements.
ENDS