BNZ note that they "have heard market...>

NEW ZEALAND: BNZ note that they "have heard market speculation that the growing

size of the NZGB market will lead to its inclusion in major bond indices (like

the WGBI). NZGBs are unlikely to be formally added to the WGBI until 2023, at

the earliest, on our estimates. Entry into the WGBI would be a medium-term

positive for NZGBs and trigger broader investor participation in the market.

However, this is a likely a story for two-to-four years' time, not now. We think

the long-end of the NZGB market is going to come under pressure before the end

of the year, as the balance between NZDM issuance and RBNZ QE tips in favour of

supply exceeding demand. "