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Treasury reduces Kiwi Bond interest rates, the benchmark for risk-free saving for retail savers, their third cut in 2024
17th Oct 24, 10:19am
by
Savers who use the Treasury's Kiwi Bond offers will want to know they cut them on Thursday, probably not surprising given the recent Official Cash Rate reduction eight days ago.
That and declining wholesale rates will have induced them to trim these rates. That means they are now off the high point in the current cycle.
The 'curve' is still inverted but slightly less so.
Treasury (or more precisely, the Debt Management Office of Treasury) last set these rates on August 22.
For subscriptions of $1,000 - $500,000 they are now at:
| Maturity | change | Rate |
| 6 months | -50 bps | 4.50 percent per annum |
| 12 months | -25 bps | 4.25 percent per annum |
| 2 years | -25 bps | 3.75 percent per annum |
| 4 years | none | 3.75 percent per annum |
The official announcement is here.
Savers who value Government-guaranteed term deposits at what are relatively high current rates should assess the current position. Today's cut may not be the last in 2024.
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