Yieldbroker’s Auction platform selected by the Reserve Bank of New Zealand for its Large Scale Asset Purchases

Press Releases
12 June 2020


Yieldbroker’s Auction platform selected by the
Reserve Bank of New Zealand for its Large Scale Asset Purchases

Sydney and Singapore, 12 June 2020 - The Reserve Bank of New Zealand (RBNZ) has selected the Yieldbroker platform to facilitate the auction process for undertaking Large Scale Asset Purchases (LSAP) in the secondary market, which commenced on the 2nd June 2020 (Reserve bank to use Yieldbroker DEBTS for LSAP auctions).

The press announcement of 12th May 2020 stated, “This application was selected by the Reserve Bank and provides an efficient and automated service. It will replace the telephone bidding process, which has been used since the first LSAP auction on 25 March”.

This follows Yieldbroker being selected by the Reserve Bank of Australia (RBA) in March 2020 for its domestic quantitative easing program (RBA purchases of Government securities).

Like Australia, the rapid increase in fiscal stimulus to support the New Zealand economy has also required a large increase in Government borrowing programs. In April and May this year, the Australian Office of Financial Management (AOFM) net bond issuance through the Yieldbroker platform increased 11-fold on the prior year. New Zealand Debt Management (NZDM) net issuance through Yieldbroker increased 50-fold over the same period.

In the first week of utilising the platform, the RBNZ has successfully purchased an initial amount of approximately NZ$2bn of NZ Government and NZ LGFA securities across a wide range of maturities.

“Yieldbroker is pleased to play an important role in providing the digital infrastructure and technological expertise to support the Fixed Income market in New Zealand [and Australia].  A critical part of this has been enabling the timely and efficient execution of issuance and buy back of bonds from the official sector. Working in collaboration with the RBNZ [and RBA] on delivering these necessary key initiatives is testament to our track record and the trust they have in our ability to deliver,” says Anthony Robson, CEO of Yieldbroker.

For further information on Yieldbroker connectivity for trading or access to Yieldbroker market data and trading analytics please contact BusinessDevGroup@yieldbroker.com.