New Zealand BPS – “Surprise” is in bond buying program – ANZ Research

ANZ Research takes note of the surprise offered by the New Zealand budget statement in its report on ‘2016 Half-Year Economic and Fiscal Update (HYEFU) and 2017 Budget Policy Statement (BPS).

Key quote

Although most (including us) assumed the hit from the Kaikoura quake would lead to an upgrade in current year issuance (duly lifted from $7bn to $8bn), the surprise is that the slack will be taken up by planned syndication of a 20 September 2040 linker to be launched via syndication in calendar H1 2017.

There was no change to the 2017/18 and 2018/19 bond programmes, but a $1bn reduction (from $7bn to $6bn) in 2019/20.