Government bond turnover - D9

Released
18 June 2018 03:00 p.m.
Next release
25 June 2018 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Weekly
Month: Week ended:
($NZmillion) Apr 2018 May 2018 18 May 25 May 01 Jun 08 Jun 15 Jun
15 Mar 2019 Non-repo 669 991 326 224 29 99 36
Repo/others 15,317 19,365 3,087 5,508 4,056 3,130 2,011
Total 15,986 20,356 3,412 5,732 4,085 3,230 2,046
15 Apr 2020 Non-repo 912 1,118 318 268 79 131 124
Repo/others 11,175 7,349 2,032 1,433 751 1,151 914
Total 12,087 8,467 2,350 1,701 830 1,282 1,039
15 May 2021 Non-repo 434 1,356 226 263 290 126 154
Repo/others 12,090 12,992 1,472 3,553 2,720 2,790 1,595
Total 12,524 14,348 1,697 3,816 3,010 2,917 1,749
15 Apr 2023 Non-repo 1,075 1,724 381 339 195 781 263
Repo/others 4,822 5,134 598 1,591 1,440 1,110 801
Total 5,897 6,858 979 1,930 1,635 1,892 1,064
15 Apr 2025 Non-repo 1,488 1,690 270 142 645 264 70
Repo/others 8,106 7,243 1,112 1,012 2,160 1,840 758
Total 9,595 8,934 1,382 1,153 2,805 2,104 828
20 Sep 2025 Non-repo 120 812 193 86 355 117 23
Repo/others 1,753 3,491 1,269 762 787 312 422
Total 1,873 4,303 1,461 848 1,141 429 444
15 Apr 2027 Non-repo 1,265 1,224 256 202 221 575 235
Repo/others 6,890 8,355 1,465 1,550 1,725 1,738 748
Total 8,155 9,580 1,721 1,752 1,946 2,313 984
20 Apr 2029 Non-repo 2,009 1,988 421 280 339 268 277
Repo/others 12,925 11,300 2,815 3,250 1,606 1,326 734
Total 14,935 13,289 3,237 3,530 1,945 1,595 1,011
20 Sep 2030 Non-repo 462 325 51 33 57 40 86
Repo/others 3,113 3,389 954 690 472 672 632
Total 3,575 3,714 1,004 723 528 712 718
14 Apr 2033 Non-repo 1,524 1,506 331 101 349 258 69
Repo/others 5,315 2,431 622 151 422 687 569
Total 6,839 3,938 953 252 770 945 638
20 Sep 2035 Non-repo 90 215 133 27 46 53 38
Repo/others 2,634 3,020 796 478 935 602 441
Total 2,724 3,235 929 504 980 655 479
15 Apr 2037 Non-repo 447 935 409 98 83 223 342
Repo/others 1,407 1,911 659 480 603 989 628
Total 1,853 2,846 1,068 578 686 1,212 970
20 Sep 2040 Non-repo 140 231 32 35 14 10 115
Repo/others 219 295 57 78 20 16 121
Total 360 527 89 112 34 26 235
Total Non-repo 10,636 14,117 3,346 2,096 2,700 2,946 1,830
Repo/others 85,766 86,275 16,937 20,536 17,696 16,364 10,375
Total 96,401 100,392 20,283 22,633 20,396 19,309 12,206

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:

  • Weekly and monthly volume of Non-Repo transactions by bond maturity and bond type.
  • Weekly and monthly volume of Repo/All Other transactions by bond maturity and bond type.
  • 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

Data release

Data is released on the Reserve Bank’s Statistics section.

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.

View the Statistics Release Calendar

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 Zero or value rounded to zero
- 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.