Treasury's Debt Management Office has today raised interest rates for KiwiBonds.
Recent rises in domestic wholesale rates are apparently behind the changes, according to a note on the NZDMO webpage.
The last time these rates were changed was December 19, 2011 when they were reduced.
Todays changes take most rates back to where they were prior to August 2011.
The one-year Kiwi Bonds will increase by 0.25% to 2.25%, the two-year Kiwi Bonds will increase by 0.50% to 2.75% and the interest rate for the four-year Earthquake Kiwi Bonds will increase by 0.50% to 3.25%, effective immediately.
Along with term deposit products offered by the Public Trust, these KiwiBond products are the only retail term deposits fully guaranteed by the New Zealand Government. They hold a domestic Aaa credit rating by Moody's and AA+ credit rating by S&P and Fitch (not to be confused with the NZ Government international sovereign credit rating).
They are priced at a significant discount to what is offered by trading banks.
All term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
The Kiwi Bond rates are as follows:
"for subscriptions of $1,000 - $500,000"
| Maturity |
New rate % 8-Nov-13 |
Rate % from 19-Dec-11 |
Rate % from 29-Aug11 |
| 6 months | 2.00 | 2.00 | 2.25 |
| 1 year | 2.25 | 2.00 | 2.50 |
| 2 years | 2.75 | 2.25 | 2.75 |
| Earthquake Kiwi Bond | |||
| 4 years | 3.25 | 2.75 | 3.50 |
1 Comments
Where is government's moral compass pointing as it seeks to extract savings from the citizens at returns below NZ Government debt rates when the same citizens are charged with the responsibilty, by law, to service and liquidate both liabilities.
Most recent NZDMO Tbill tender.
There is no 2 year NZGS equivalent
NZGS 6.0% 15/12/17 settled last night @ 3.93%
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