Market Notice - November 2022
Changes to the NZGS & IIB Market Parcels - Debt Securities Convention
The NZFMA's Rates Committee recently initiated a review of the terms to maturity and market parcels for New Zealand Government Bonds and New Zealand Inflation Indexed Bonds. The NZFMA consulted with Rates Committee members and with organisations that are active in both markets and are not members of the Rates Committee.
Most respondents supported the change, while one respondent did not. The latter was comfortable with the current market parcels. As a result of the feedback, the NZFMA is updating the terms to maturity and market parcels with effect from 3 November 2021.
The table below highlights the changes:
|IIB current||IIB proposed|
|0 to 5 years||20||20||2||5|
|>5 to 10 years||10||15||2||3|
|>10 to 15 years||10||10||2||2|
RATES as at 25/11/2022
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