RBNZ closes offer to purchase NZ government July 2009 bonds

Release date
02 July 2009

The Reserve Bank has closed its offer to purchase NZ government bonds maturing 15 July 2009 for liquidity management purposes.

The offer was announced on 19 May and closed at 4:00pm 1 July. The Bank repurchased $329.865m of the July 2009 bond.  The Bank has not onsold any of the bonds to NZDMO, and will hold the bonds on its balance sheet till maturity.

The Bank said the offer was normal ahead of a government bond maturity. These purchases will help manage the large cash inflow to the banking system on 15 July as a result of the bond maturity (as at 30 April there were $4,197m of the 15 July 2009 bonds on issue in the market).

The operation was undertaken to manage near-term liquidity flows and has no implications for the Bank's monetary policy stance.

Media contact:
Mike Hannah, Head of Communications,
Ph 04 4713671, 021 497418, mike.hannah@rbnz.govt.nz