Open market operations - D3

Released
23 June 2017 03:00 p.m.
Next release
26 June 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Daily

Repos


OMO held Transaction type Amount offered
23 Jun 2017 Repo $500m

Maturity date Government securities Volume bid ($m) Amount allocated ($m) Max rate (% p.a.) Range of bids received (% p.a.) Range of successful bids (% p.a.) Weighted average successful bids (% p.a.) Unsuccessful range (% p.a.)
28 Jun 2017 GC 400 400 1.75 1.75 1.75 1.75 -
28 Jun 2017 15 April 2027 66 66 1.05 1.05 1.05 1.05 -
28 Jun 2017 14 April 2033 3 3 1.05 1.05 1.05 1.05 -

Reverse Repos


OMO held Transaction type Amount offered
23 Jun 2017 Reverse Repo $0m

Maturity date Government securities Volume bid ($m) Amount allocated ($m) Max rate (% p.a.) Range of bids received (% p.a.) Range of successful bids (% p.a.) Weighted average successful bids (% p.a.) Unsuccessful range (% p.a.)
- - - - - - - - -

RB Bills


OMO date 23 Jun 2017
Settlement date 23 Jun 2017
Total amount $500m
RB Bills offered 28 Jun 2017
Days to maturity 5
Amount offered 500m
Results:
Total bids submitted ($m) -
Total no. of bids submitted -
Total successful bids ($m) -
Total no. of successful bids -
Successful range (% p.a.) -
Weighted average successful yield (% p.a.) -
Unsuccessful range (% p.a.) -

Government Bond Repurchases


Total to date: $175m


Transaction date Settlement date Bond repurchased Face value ($m)
- - - -


Coverage characteristics

Data volumes are shown in millions of New Zealand dollars and interest rates are New Zealand interest rates.

The following data is recorded and detailed further in the series description:

(a) Date held

(b) Transaction type

(c) Maturity

(d) Eligible securities

(e) Total volume offered

(f) Volume offered per maturity

(g) Volume bid

(h) Total amount transacted

(i) Range of bids received

(j) Range of successful bids

(k) Weighted average successful bids

(l) Settlement date

(m) Total number of bids submitted

(n) Total number of successful bids

The Open Market Operation (OMO) is used to manage the level of liquidity in the New Zealand financial system. These operations are announced daily via electronic media. The announcement indicates whether the RBNZ will inject or withdraw funds (using reverse repurchase transactions or repurchase transactions). Operations are conducted as tenders and registered bidders telephone their bids to the RBNZ.

Prior to 11 December 2007 eligible securities were limited to Government bonds, Treasury bills and Reserve Bank bills (RBB). The Reserve Bank discontinued issuing RBB in 1999 but re-introduced them in November 2008 (refer below).

Beginning on 11 December, 2007, Kauri bonds have been accepted for use in the Bank's Domestic Market Operations. The range of acceptable securities was expanded further in June 2008. Refer Eligible securities and haircuts for a full list of eligible securities.

Beginning in November 2008, in conjunction with the re-introduction of RBB, the Reserve Bank introduced a Term Auction Facility (TAF). The TAF operates in a similar manner to the OMO and is used to inject liquidity into the banking system. A TAF auction is held each Wednesday morning in place of the daily OMO. RBB tenders are also held weekly on Wednesday afternoon, as required, and used to withdraw liquidity from the banking system.

Data is available on our website from 1 November 1995.

Periodicity

Daily.

Timeliness

The results of the OMOs and Term Auction Facility will be published on the day they are held. RBB tenders results will released the day after the tender. Results will also be released via electronic media.

Access by the public

Statistics release calendar

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

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 historical data on OMO's, the data are disseminated by the RBNZ as a service to the public.

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

The data are final and are not subject to revision.

Any changes to the processes of conducting the OMO's are announced via electronic media.

Procedures are outlined in Section 3 of the Operating Rules and Guidelines for the Domestic Markets .

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

For additional explanatory information see the RBNZ Bulletin, Vol 71 No 4, Dec. 2008.

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

Not applicable.

Additional notes

From October 1994, the RBNZ introduced repurchase agreements into its open market operations. On 9 October 1995, the RBNZ stopped using secured loans in its open market operations.

Electronic Media

Includes Reuters and Bloomberg.

Date updated: June 2013

Most securities reported are wholesale market instruments: New Zealand Government bonds (with the exception of the Feb 2016 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 eurocommercial paper), certificates of deposit, debentures, convertible notes, and medium term notes issued by private placement.

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.

Descriptions of tenders

Open market operations

The Open Market Operation (OMO) is used to manage the level of liquidity in the New Zealand financial system. These operations are announced daily via electronic media. The announcement indicates whether the RBNZ will inject or withdraw funds (using reverse repurchase transactions or repurchase transactions). Operations are conducted as tenders and registered bidders telephone their bids to the RBNZ.

Prior to 11 December 2007 eligible securities were limited to Government bonds, Treasury bills and Reserve Bank bills (RBB). (See Description for definition of terms) The Reserve Bank discontinued issuing RBB in 1999 but re-introduced them in November 2008.

Beginning on 11 December, 2007, Kauri bonds have been accepted for use in the Bank's Domestic Market Operations. The range of acceptable securities was expanded further in June 2008. Refer to the Eligible securities and haircuts page for a full list of eligible securities.

Term Auction facility

Beginning in November 2008, in conjunction with the re-introduction of RBB, the Reserve Bank introduced a Term Auction Facility (TAF). The TAF operates in a similar manner to the OMO and is used to inject liquidity into the banking system. A TAF auction is held each Wednesday morning. RBB tenders are also held weekly on Wednesday afternoons, and used to withdraw liquidity from the banking system.

Reserve Bank bill tender

Short-term discount securities issued by the Reserve Bank. The Bank ceased issuing Reserve Bank bills on 5 February 1999. All Reserve Bank bills and related advances to The Treasury were repaid by 9 April 1999. Reserve Bank Bills were re-introduced in November 2008 to assist in managing the liquidity of the banking system. The RBB tenders are held weekly, on Wednesday afternoon, to withdraw liquidity from the banking system.

Tender related Terminology

Total volume/ amount offered

The total nominal amount being offered in the tender.

Volume offered per maturity

More than one maturity date can be offered in an operation. A volume limit will be set for each maturity offered. Bids may be accepted for one or all of the maturity dates, but the total amount accepted will normally not be more than the total volume offered.

Volume bid/ Total bids submitted

The total amount bid for the particular maturity date by all bidders.

Total amount transacted/ Total successful bids

The total amount accepted for the particular maturity date.

Range of bids received

The range of bids received, this includes successful and unsuccessful bids.

Range of successful bids

The range of successful bids, from the minimum to the maximum rate.

Weighted average successful bids

Weighted average interest rates, weighted by volume per rate.

Tender number

The official number of the tender recorded by the DMO.

Date held

Refers to the date when the tender was held. This is not the settlement date where cash is exchanged for the security except for the RBNZ's Open Market Operations where settlement occurs on the day of the tender.

Over subscriptions accepted

Sometimes the amounted accepted for a maturity in a NZDMO tender may be more than that originally offered. This is subject to the provision that the total amount of bids accepted in all maturities does not exceed the total amount offered in the tender.

Range of yields on unsuccessful bids

The range of unsuccessful bids, from the lowest accepted rate to the highest bid received. The lowest rate of the unsuccessful bids can be the same as the highest rate of the successful bids if successful bids have been pro-rated at the highest successful rate.

Weighted average yield of unsuccessful bids

Weighted average interest rates, weighted by volume per rate.

Symbols and conventions

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

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.