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:
Term NZGS nominal 
current
NZGS nominal
proposed
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
>15 years 5 5 2 2
The updated conventions can be found here.


Data Summary

RATES as at 8/12/2021
2pm NZDFIX
0.6784
TWI
73.0
Delayed Data

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