June 09, 2022 - 12:05 PM 282 views
According to Bloomberg reports, “the Reserve Bank of New Zealand (RBNZ) said on Thursday that it will progressively sell off government bonds bought during its quantitative easing (QE) programme over the next five years.”
"The Reserve Bank will sell bonds to the Treasury Department's debt management office at a rate of NZ$5 billion ($3.2 billion) per June year, beginning with the longest maturity date."
"Sales will continue in a "gradual and predictable way" until holdings reach zero, which is predicted in mid-2027." Bonds having shorter maturities will mature without the need for reinvestment or sales."
"The Reserve Bank and NZDM will continue to work closely together to ensure that the New Zealand government bond market runs smoothly."
As of writing, the NZD/USD is trading near 0.6435, down 0.15 percent on the day. The kiwi isn't benefiting from rising 10-year kiwi bond yields, which reached their highest level since June 2015 as a result of the above reports.
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