New Government Bonds Introduced
May 6, 2009 New Zealand Finance
The Government will be introducing a longer period bond at its 7th of May bond tender.
According to a Beehive Media Release, the Government is issuing a 12-year bond. Seemingly this move comes from the explicit request of investors. Statements from New Zealand Prime Minister John Key show that the investor market is expressing a desire for a higher than 10-year bond. Further, with the forecasted increased borrowing by the Government, to cover and widening budget deficit, the borrowing program is aimed at becoming more appealing to investors.
John Key went on to say that the Government is n the process of evaluating further issuance of even longer bonds. The prime example mentioned was a 15-year bond. Although it was sad that the market and its participants will be consulted before any firm decisions are made.