MNI BRIEF: RBNZ To Begin Bond Sales In July

New Zealand’s central bank on Thursday outlined operational details on the sale of bonds purchased under the recent Large Scale Asset Purchase (LSAP) Programme, with the bank selling bonds at the rate of NZD5 billion a year beginning in July.

The Reserve Bank of New Zealand will send the bonds in order of maturity date, beginning with the longest maturity, and shorter maturity bonds will mature without reinvestment or sales. The sales will continue until the LSAP, which purchased NZD53 billion in Government and Semi-Government securities up until July 2021, is reduced to zero.

This expected to be in mid-2027. The RBNZ said the NZ Debt Management office had been consulted on the sales, which had been incorporated into the issuance guidance in the government’s 2022 budget, (See MNI STATE OF PLAY: RBNZ Wants 'Least Regrets" On Policy Views)