Japanification Stalks New Zealand Debt That’s 37% Owned by RBNZ
- Central bank’s government bond holdings catching up with BOJ’s
- Falling yields may deter capital flows needed to fund deficit
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The Reserve Bank of New Zealand’s growing dominance of its bond market is sparking unfavorable comparisons with Japan.
The RBNZ’s ownership of the nation’s outstanding nominal government bonds has rocketed from 6% to 37% in the space of seven months, according to calculations by Bloomberg based on data from the central bank. It took Bank of Japan Governor Haruhiko Kuroda more than three years to reach this level, and his starting point was over 11%.