Facilities at a glance
The Reserve Bank's Markets Operations team implements monetary policy and manages liquidity in the banking system. It achieves this by undertaking a variety of operations in financial markets. The Bank also provides standby facilities for cash and Government bonds to registered market participants.
| Facility | Objective | Method | Frequency | Announcement, Open, Close, Results |
Volume | Terms | Settlement | Statistics |
|---|---|---|---|---|---|---|---|---|
|
Term Auction Facility (TAF) |
Provide term funding collateralised against approved (Tier 1 and 2)* collateral | Auction | Once a week (Tues) | 9.30am, 9:30am, 9.45am, 10am (approx) | 2 billion per auction^ | 3, 6 and 12 months | T+1 |
Refinitv: RBNZ05 Bloomberg: RBNM 5 |
|
Corporate Open Market Operations (COMO) |
Provide short-term funding collateralised against approved (Tier 3)* collateral | Auction | Once a week (Tues) | 11.00am, 11.00am, 11.15am, 11:30am (approx) | 500 million per auction^ | 1 day to 3 months | T+0 |
Refinitiv: RBNZ13 Bloomberg: RBNM 11 |
| Large Scale Asset Purchases (LSAP) | Outright purchases of nominal and inflation-indexed New Zealand Government bonds to lower term interest rates and support market functioning | Auction | Three times per week (Mon, Wed & Fri) | 10.00am, 11.00am, 11.30am, 11.45am | Program size 100 billion
Nominal bonds cap of 60% of total issuance Inflation-indexed bonds cap of 30% of total issuance (Auction size set weekly by RBNZ) |
1 to 21 years (maturity governed by NZ Government bonds on issue) | T+2 |
Refinitiv: RBNZ03 & 09 Bloomberg: RBNM 4 & 8 |
| Large Scale Asset Purchases - LGFA (LSAP LGFA) | Outright purchases of nominal Local Government Funding Agency ("LGFA") bonds to lower term interest rates and support market functioning | Auction | Once a week (Thurs) | 10.00am, 11.00am, 11:30am, 11:45am |
Program size is limited to 30% of overall LGFA bond issuance (Auction size set weekly by RBNZ) |
1 to 17 years (maturity) | T+2 |
Refinitiv: RBNZ03 &10 Bloomberg: RBNM 4 & 8 |
| Reserve Bank Bills (RB Bills) | Instrument to withdraw liquidity using short-term Central Bank bills issued against cash | Auction | Twice a week (Mon and Weds) | 12.00pm, 2.30pm, 2.45pm, 3.00pm (approx) | 400 million per auction^ | 7 and 28 days | T+1 |
Refinitiv: RBNZ08 Bloomberg: RBNM 7 |
| Bond Lending Facility (BLF) | Provide access to NZ government bonds as a lender as a lender of last resort to facilitate settlement. Priced at OCR minus 0.25% | Reverse enquiry | Daily | N/A, 3.00pm, 4.00pm, 3.00pm (next business day) | 500 million per day | Overnight | T+0 |
Refinitiv: RBNZ01 Bloomberg: RBNM2 |
| Early Bond repurchase | Purchase of soon to mature New Zealand Government bonds for liquidity management | Reverse enquiry from banks; trading via Broker | Daily |
Window open 10.00am to 12.00pm and 2.00pm to 4.00pm Results 4.30pm (approx) |
Discretionary | 1 day to 18 months | T+2 |
Refinitiv: RBNZ22 Bloomberg: GPGX1549 14 6 |
| Term Lending Facility (TLF) | Provide term funding collateralised against approved (Tier 1 and 2)* collateral to support the Crown's Business Finance Guarantee Scheme ("BGFS") | Reverse enquiry | Monthly (18th - 20th business day of each month) | Window open 10.00am to 12.00pm and 1.00pm to 3.00pm. Results reported next business day | Determined by Crown and based on monthly outstanding numbers reported by individual banks | 5 years | T+1 | |
| Bond Market Liquidity Support (BMLS) | Small scale purchases of nominal New Zealand Government bonds to support market functioning | Broker | Daily | Window open 10.00am to 3.00pm | Discretionary | 1 to 21 years | T+2 | D10 |
| Bond Market Liquidity Support (BMLS LGFA) | Small scale purchases of nominal Local Government Funding Agency ("LGFA") bonds to support market functioning | Direct request for quote from banks; Broker | Daily | Window open 10.00am to 3.00pm | Discretionary | 1 to 17 years | T+2 | D10 |
| FX Swaps (incl. Cross Currency basis swaps) | The sale of NZD, purchase USD or vice versa for a pre-agreed term for liquidity management and market functioning | Direct request for quote from banks; Broker, Reverse enquiry | Daily | Not applicable | Unlimited | 1 day to 6 months | Various |
Refinitiv: RBNZ02 Bloomberg: RBNM 3 |
| Overnight Reverse Repo facility (ORRF) | Provides access to liquidity at a penalty rate and against Tier 1, 2 & 3* collateral for liquidity management and monetary policy purposes. Priced at OCR plus 0.25% | Automatic or reverse enquiry | Daily | Results announced 9.00am next business day | Unlimited subject to approved collateral | Overnight | T+0 |
Refinitiv: RBNZ02 Bloomberg: RBNM3 |
Key
* Tier 1 - Government, Kauri & RB Bills
* Tier 2 - Bank, Local Authority, State Owned Enterprise & Residential Mortgage Backed Security
* Tier 3 - Corporate & Asset Back Securities
See our Repo eligible securities and haircuts page for a comprehensive list
^ The RBNZ reserves the right to adjust volumes
Participation in RBNZ facilities is limited to registered counterparties. For more information please visit the Domestic Markets section of the website.
Auction Facilities
Weekly Calendar
| Time | Monday | Tuesday | Wednesday | Thursday | Friday |
|---|---|---|---|---|---|
|
0930-0945 |
TAF | ||||
|
1100-1115 |
COMO | ||||
| 1100-1130 | LSAP | LSAP | LSAP | ||
| 1100-1130 | LSAP (LGFA) | ||||
| 1430-1445 | RB Bills | RB Bills | RB Bills | ||
| 1500-1600 | BLF | BLF | BLF | BLF | BLF |
| 1000-1600 | Early Bond Repurchase | Early Bond Repurchase | Early Bond Repurchase |
Early Bond Repurchase |
Early Bond Repurchase |
Monthly Calendar
| Time | 18 - 20th business day of the month |
|---|---|
|
1000-1200 & 1300-1500 |
TLF |
Discretionary Operations
| Time | Monday | Tuesday | Wednesday | Thursday | Friday |
|---|---|---|---|---|---|
| 1000-1500 | BMLS | BMLS | BMLS | BMLS | BMLS |
| 1000-1500 | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) | BMLS (LGFA) |
| 0700-1730 | FX Swaps | FX Swaps | FX Swaps | FX Swaps | FX Swaps |
Key
TAF - Term Auction Facility
COMO - Corporate Open Market Operations
LSAP - Large Scale Asset Purchases
LSAP LGFA - Large Scale Asset Purchases – LGFA
RB Bills - Reserve Bank Bills
BLF - Bond Lending Facility
TLF - Term Lending Facility
BMLS - Bond Market Liquidity Support
BMLS LGFA - Bond Market Liquidity Support
FX Swaps (includes Cross Currency basis swaps)
ORRF - Overnight Reverse Repo Facility
