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Funding Strategy

The New Zealand Debt Management Office’s funding strategy aims to support the overall objective of minimising the Crown’s borrowing costs over the long term with due consideration to risk.

The funding strategy aims to support the overall objective of minimising the Crown’s borrowing costs over the long term with due consideration to risk.

For the New Zealand Government Bond market, meeting this objective is currently best achieved by taking a strategic, rather than short-term tactical approach to funding activities.

Delivery of funding activity is underpinned by the core principles of transparency, consistency and even-handedness and future actions are communicated in a timely manner.

The funding strategy aims to balance three key goals:

  • considering the overall structure of the Crown’s balance sheet
  • capturing and stimulating investor demand
  • promoting well-functioning and liquid New Zealand Government Securities markets.

The sustainability of the New Zealand Government Bond market is supported by a Government commitment to maintain levels of NZGBs on issue at not less than 20 per cent of GDP over time.

Consideration is also given to ensuring credit, market, operational and liquidity risks are well managed within the Crown’s risk appetite. Read more about risk management.

Bond portfolio as at 31 July 2018 - market outstandings

Note: In addition there is approximately NZD 4 billion in Treasury Bills outstanding.

Last updated: 
Wednesday, 1 August 2018