The surprisingly large uptick in the amount of debt the Treasury is expected to issue in coming years will come at a cost, S&P Global Ratings warns.

On Tuesday, Treasury increased its forecast bond issuance programme by a whopping 16 percent.

It now believes it’ll have to issue $146 billion of New Zealand Government Bonds (debt) in the four years to 2027/28 - $20b more than forecast at the Budget in May.

NZ Herald Wellington business editor Jenee Tibshraeny explains further.

LISTEN ABOVE