Strong demand for bonds

Photo / Kenny Rodger

The New Zealand Debt Management Office increased the amount of New Zealand government bonds it sold in a tender this week in response to strong demand - particularly from one overseas investor.

The office, which manages the Government's debt, sold $950 million of bonds at a tender on Thursday. It was the largest tender the office has held in decades.

NZDMO Treasurer Philip Combes said demand was so strong for New Zealand government bonds the office would consider revising the size of the bond programme for the year upward when the Budget is released.

The Government plans to sell $13.5 billion of bonds in the year to June 30 and it has already sold $9.25 billion of that total.