NZGB inclusion in global index further away than reported

The entry of New Zealand government bonds (NZGBs) to the Citi World Government Bond Index (WGBI) – which analysts believe would significantly increase the market's profile with global investors – is a somewhat more distant prospect that recent reports suggest. A substantial quantity of NZGBs is held by official institutions in New Zealand, removing them from outstanding volumes for index purposes and thus keeping the market below the inclusion threshold.