Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


BUDGET 2012: DMO flags inflation-indexed bond issues

BUDGET 2012: DMO flags inflation-indexed bond issues in coming two years

By Paul McBeth

May 24 (BusinessDesk) - The New Zealand Debt Management Office will sell as much as $4 billion of inflation-indexed bonds in the next two financial years.

The government's debt issuer has been looking at resuming inflation-linked bond sales for the past couple of years, and will auction up to $2 billion in each of its 2013 and 2014 bond programmes.

The DMO increased its 2012 programme by $1.5 billion to $15 billion as it seeks to raise $45.5 billion of new debt over the next four years. That's $3 billion lower than was flagged in the pre-election fiscal and economic update in November. Over the next four years, the DMO expects to raise $14.9 billion in net borrowing.

"The increase in the 2011/12 bond programme will provide operational flexibility to issue additional bonds should there be an increase in demand prior to the end of the fiscal year," the DMO said. "Any such additional issuance, together with the increase in the 2012/13 bond programme, will be used to reduce Treasury bill outstandings from $9 billion to $5 billion."

In March, the DMO fell behind the run-rate required to meet its $13 billion annual target.

The DMO will see a $500 million reduction in net borrowing in the 2013 March year and $3 billion in 2015 as maturities outpace the volume of new sales.

The government expects net debt to peak at 28.7 percent of gross domestic product in 2013/14, and Finance Minister Bill English said the spending decisions it has made have caused a "lasting and permanent impact" on debt.

The low interest rate environment hasn't encouraged the government to ramp up its borrowing programme.

"The fall in bond rates has been unprecedented," English said. "We're not considering taking on more debt just because it's cheaper."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Contact: Business Drops, New Generation On Hold

New Zealand’s second-largest energy company Contact Energy (‘Contact’) released its full year financial results for the 12 months to 30 June 2020 (‘FY20’) this morning. More>>

Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>