Reserve Bank to include Local Government Funding Agency bonds in Bond Lending Facility

Date: 29 April 2020

Effective 1 May 2020 Local Government Funding Agency (“LGFA”) bonds will be included in the Reserve Bank’s Bond Lending Facility.

These bonds are being made available to ensure that the market continues to operate efficiently.

Bonds available for lending will be limited to the amount held in the Reserve Bank’s own inventory.

All bonds lent through the Bond Lending Facility will continue to be lent at the Official Cash Rate (OCR) less 50 basis points.

This window will be open daily between 3:00pm and 4:00pm.

Full details of the Bank's liquidity facilities including applicable haircuts for eligible securities, eligibility criteria, and operational guidelines are available in the Domestic Markets section of the Reserve Bank’s website.

For further information contact:
Dean Hill
Manager, Financial Markets
[email protected]