Interest Rate Strategy

Upside risks to the bond programme from PREFU

Stuart Ritson -

New Zealand Government Bonds (NZGB) have underperformed relative to interest rate swaps across the yield curve since the Budget Economic and Fiscal Update (BEFU) in May. The BEFU’s NZ$20 billion increase in the borrowing programme, out to June 2027, has required a premium to take down the additional supply.

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