Government bond turnover - D9

Released
24 October 2017 03:00 p.m.
Next release
30 October 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Weekly
Month: Week ended:
($NZmillion) Aug 2017 Sep 2017 22 Sep 29 Sep 06 Oct 13 Oct 20 Oct
15 Dec 2017 Non-repo 527 478 184 21 354 144 177
Repo/others 5,972 8,280 2,084 2,334 1,199 1,086 1,294
Total 6,498 8,757 2,267 2,355 1,553 1,230 1,471
15 Mar 2019 Non-repo 1,376 1,007 331 116 309 144 400
Repo/others 19,308 19,441 4,070 4,363 3,824 4,122 5,934
Total 20,684 20,449 4,401 4,480 4,133 4,267 6,334
15 Apr 2020 Non-repo 1,749 1,298 320 337 309 94 226
Repo/others 9,356 5,512 1,019 1,659 1,561 1,272 2,132
Total 11,105 6,810 1,339 1,996 1,870 1,365 2,358
15 May 2021 Non-repo 1,047 1,587 631 250 273 229 88
Repo/others 5,303 9,085 3,383 2,888 3,431 674 1,564
Total 6,350 10,671 4,014 3,138 3,703 902 1,653
15 Apr 2023 Non-repo 865 1,154 418 208 363 160 130
Repo/others 5,889 4,354 767 1,053 1,246 857 53
Total 6,754 5,508 1,184 1,261 1,609 1,017 183
15 Apr 2025 Non-repo 1,214 1,344 438 430 151 285 214
Repo/others 7,242 6,704 1,386 3,217 2,118 699 646
Total 8,456 8,047 1,824 3,647 2,269 985 860
20 Sep 2025 Non-repo 493 367 99 45 203 99 92
Repo/others 3,724 3,093 532 1,219 962 414 802
Total 4,217 3,460 631 1,264 1,165 513 893
15 Apr 2027 Non-repo 1,537 951 284 169 387 347 188
Repo/others 3,673 3,225 814 1,417 640 665 1,040
Total 5,209 4,176 1,099 1,585 1,027 1,012 1,229
20 Sep 2030 Non-repo 162 203 61 10 96 41 157
Repo/others 1,263 2,031 412 745 188 213 139
Total 1,424 2,235 473 755 283 254 297
14 Apr 2033 Non-repo 898 549 203 68 270 237 62
Repo/others 3,232 3,022 548 545 816 491 424
Total 4,131 3,571 751 614 1,085 728 486
20 Sep 2035 Non-repo 89 72 28 15 15 56 6
Repo/others 358 668 29 433 19 59 29
Total 447 740 56 448 34 115 35
15 Apr 2037 Non-repo 233 388 75 60 88 111 75
Repo/others 1,608 799 235 318 285 400 263
Total 1,842 1,187 310 378 373 510 339
20 Sep 2040 Non-repo 317 326 133 6 87 132 147
Repo/others 1,134 1,699 773 268 396 409 544
Total 1,452 2,024 906 273 482 541 691
Total Non-repo 10,508 9,725 3,205 1,734 2,904 2,077 1,963
Repo/others 68,062 67,911 16,052 20,459 16,683 11,361 14,865
Total 78,570 77,636 19,257 22,193 19,587 13,438 16,828

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Data is in millions of New Zealand dollars.

The following data covering all transactions that have occurred within the New Zealand Bond Market are obtained from NZClear:

(a) Weekly and monthly volume of Non-Repo transactions by bond maturity and bond type.

(b) Weekly and monthly volume of Repo/All Other transactions by bond maturity and bond type.

(c) Weekly and monthly volume of total transactions by bond maturity and bond type.

Bond turnover is captured from the NZClear system, with the data recorded on the transaction settlement date. Only one side of each transaction is recorded. In respect of repurchase agreements, one side of each leg of the transaction is, therefore, recorded.

Monthly and weekly data is available from January 1996.

Periodicity

Weekly

Timeliness

Published on the first working day after the end of the proceeding week.

Access by the public

Statistics release calendar

The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

Although there is no law that requires the RBNZ to compile and publish data on the bond turnover survey, there is an agreement between New Zealand Debt Management Office (NZDMO) and the RBNZ that the RBNZ will produce and publish a weekly Secondary Market Turnover Survey.

Provision of information about revisions and advance notice of major changes in methodology

Procedures are outlined in Section 4 of the Operating Rules and Guidelines for Domestic Market Operations.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

Daily data covering all transactions are obtained from NZClear.

Dissemination of statistics that support statistical cross-checks and provide assurance of reasonableness

Not applicable.

Security types

Most securities reported are wholesale market instruments: New Zealand Government bonds (with the exception of the Feb 2016 and Sep 2025 bonds which are inflation-indexed bonds), Treasury bills, Corporate bonds, Reserve Bank bills, Commercial paper or Registered certificates of deposit (RCDs).

Interest bearing securities

These are written promissory agreements, whether marketable or not, in which one party promises to pay a stated sum on demand, or on a specified date, to the legal holder of the document. They may also involve a promise to pay stated interest at specified intervals over the term of the bond. Alternatively, they may be issued and traded at discount from their nominal value.

These include: Government bonds, Treasury bills, Reserve Bank bills, bills of exchange, commercial paper (including euro commercial paper), certificates of deposit, debentures, convertible notes, and medium term notes issued by private placement.

Government securities

There three main categories of government securities, each of which have several sub-categories. The three main categories are:

Wholesale government securities are issued for terms of greater than one year and carry a coupon payment. Wholesale securities are initially sold, normally by tender, to financial institutions.

Treasury bills are securities issued for terms of less than one year and do not carry a coupon payment. Treasury bills are initially sold at a discount to the nominal value to financial institutions, normally by tender.

Retail government securities are issued over the counter for terms of two or four years starting from the date of purchase and carry a coupon payment.

Types of Government securities currently on issue are:

Government bonds which are denominated in New Zealand dollars, issued for terms greater than one year, and have a fixed interest coupon paid semi-annually in arrears.

Inflation-indexed bonds (IIB) are denominated in New Zealand dollars with a fixed coupon paid quarterly in arrears. The outstanding Indexed Bonds are scheduled to mature on 15 February, 2016. On maturity, the principal and the indexed component of the -bonds are redeemable. The index component refers to the incremental CPI adjustment, from 15 November 1995, to the principal due date.

Treasury bills are denominated in NZ dollars sold at a discount to the nominal value and carry no coupon. The bills are redeemable at par on maturity. Treasury bill tenders are generally held by NZDMO, on a weekly basis. Two maturities of regular Treasury bills are offered in each tender with roughly three and six month maturities. However, from time to time the RBNZ will also offer seasonal Treasury bills in the tenders. Seasonal Treasury bills are issued for liquidity management purposes and generally have a maturity of less than three months. Seasonal Treasury bills sold in tenders are noted by *.

Other types of securities currently on issue are:

Reserve Bank bills

Reserve Bank bills are denominated in New Zealand dollars, sold at a discount to par and carry no coupon. The bills can be discounted back to the RBNZ when they are within 28 days of maturity. The bills are redeemable at par on maturity. The Reserve Bank stopped issuing bills in February 1999 but re-introduced these in November 2008.

Commercial paper

Refers to private sector (including financial corporations), short-term (usually less than one year) discounted debt instruments.

Corporate bonds

Refers to New Zealand dollar denominated debt instruments, recorded on a New Zealand register, that are issued by private sector entities (including financial corporations). Issuers can be both New Zealand residents (domestic) and non-residents (Kauris).

Domestic corporate bonds

Refers to issues of New Zealand dollar denominated debt recorded on a New Zealand register by New Zealand incorporated entities.

Non-domestic corporate bonds

Refers to issues of New Zealand dollar denominated debt issued by a non-resident incorporated entity and recorded on a New Zealand register (such issues are sometimes referred to as "Kauri" bonds).

Registered certificates of deposits (RCDs)

Refers to issues of discounted, short-term (less than one year) debt securities, the majority of which are issued by banks. RCDs have largely taken the place of individual bank bills.

Repurchases and reverse repurchases

Arrangements under which one party sells a security at a specified price to another party with an agreement that the security will be repurchased at a fixed price on a specified future date. The party which sells the security upon entering the arrangement is said to be "Repurchasing" the security. The party which buys the security upon entering the arrangement is said to be "Reverse repurchasing" the security.

Security related Terminology

Maturity The date that final repayment for a security or loan is expected to be made. Maturity data may be presented in slightly different ways depending on the particular form of the security.

Discount The discount is the difference between the present value and the nominal value of a security.

Present value The present value refers to the current market value of a security.

Nominal value The nominal value of a security represents the amount to be repaid at maturity. The nominal value is recorded on the face of the document recording the entitlement, generally a certificate or bond. It is also referred to as the "face value".

Coupon A coupon represents the regular interest payment on a security (such as a bond). Coupon payments are typically annual or semi-annual.

Date first Issued The first date on which stock related to the particular security was first issued.

Loan Prefix A code allocated to a particular security.

Amount in market The total nominal value a security issued and that is available for trading in the secondary market. In the case of Government securities, this value excludes holdings of the RBNZ and Earthquake Commission which do not hold them for trading purposes.

Banking day

Mondays through Fridays, excluding public holidays.

Outright holdings (nominal holdings)

Securities held outright by the owner either directly or through an agent.

Settlement date

The date counterparty buys the government bond from the Bank.

Descriptions of institutions

State Owned Enterprises (SOEs)

The State Owned Enterprises are required to operate on the basis of principles and procedures in the State Owned Enterprises Act 1986. Under the Act, the Boards of SOEs have complete autonomy on operational matters, such as how resources are used, pricing and marketing of output. Under the Act, SOEs have no responsibility for continuing non-commercial operations and the Government is required to negotiate an explicit contract if it wishes an SOE to carry out such activities.

Boards of directors drawn from the private sector have been formed to manage SOEs. Each Board is required to present to the shareholding ministers a statement of corporate intent and an outline of business objectives, defining the nature and scope of activities and performance targets. These are closely monitored and SOEs are expected to achieve performance targets and pay dividends on a basis comparable to their private sector competitors. The shareholding ministers may determine the levels of the dividends.

The SOEs borrow in their own names and on their own credit, in most cases without a guarantee or other form of credit support from the Government. SOEs have been informed that Government policy requires that they disclaim in loan documentation the existence of such guarantees or credit supports.

The list of current SOEs are:

Airways Corporation of New Zealand Ltd

Animal Control Products Ltd

AsureQuality Ltd

Electricity Corporation of New Zealand Ltd

Genesis Energy Ltd (mixed ownership model company)

KiwiRail Holdings Ltd

Kordia Group Ltd

Landcorp Farming Ltd

Meridian Energy Ltd (mixed ownership model company)

Meteorological Service of New Zealand Ltd

Mighty River Power Ltd (mixed ownership model company)

New Zealand Post Ltd

New Zealand Railways Corporation

Quotable Value Ltd

Solid Energy New Zealand Ltd

Transpower New Zealand Ltd

Crown entities

Crown entities are bodies established by law in which the Government has a controlling interest through ownership mechanisms. Crown entities form part of the Crown reporting entity, but are not part of the "core" Crown. New Zealand Fast Forward Fund Limited is a crown entity.

Reserve Bank of New Zealand (RBNZ)

Refers to the Reserve Bank of New Zealand, New Zealand's central bank.

Earthquake Commission (EQC)

The EQC is New Zealand's primary provider of natural disaster insurance to residential property owners. It insures against damage caused by earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami; in the case of residential land, a storm or flood; or fire caused by any of these.

Financial and trading enterprises

Refers to the Public Trustee and Housing Corporation of New Zealand.

Insurance companies

Refers to life insurance offices and general insurance offices.

Other financial institutions

Includes organisations previously classified as savings institutions, finance corporations and investment companies and all other financial institutions.

Local authorities

These include city councils, district councils, harbour boards and electric power boards.

Other government

This includes local authorities trading enterprises (LATEs), and other New Zealand enterprises majority owned by the Government.

Private sector

This includes New Zealand companies, financial corporations and producer boards. These are organisations other than the Treasury, RBNZ and "Other government".

Other descriptions

Total New Zealand government bond turnover

The nominal of value government securities traded in the secondary market over the period specified.

Non-Repo trades

This category captures secondary market trading where a permanent change of ownership has resulted.

Repo/all other

This category is intended to capture repurchase agreements, in-house transactions, the take-up of new issue bonds, and any other transactions that are not appropriately categorised as "Non-repo".

Symbols and conventions for summary table

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.