Issuance Program Update
2019-20 Issuance Program Update
Updated 22 May 2020
Planned gross issuance of Treasury Bonds in 2019-20 is around $130 billion. Issuance currently stands at $105.2 billion. Treasury Bond issuance via tender will continue at around $5 billion in most weeks. Weekly issuance decisions will continue to take market conditions into account. Since the most recent update, a new 2-5 year and 10-12 year bond has been established by syndication. No further syndications of new maturities are planned until after the next update to issuance guidance, which will be in early-mid July.
Subject to market conditions, three tenders of Treasury Indexed Bonds are planned over the remainder of 2019-20. To date $1.3 billion has been issued in 2019-20.
Treasury Note issuance is planned to be around $3 to $5 billion each week dependent on cash management needs.
2019-20 Issuance Program Update
Updated 3 April 2020
The AOFM is providing this advice on planned issuance as an update to its previous advice of 12 March 2020.
The AOFM will not be offering guidance in the form of a planned gross issuance program ahead of the next official Budget update. Issuance guidance will take the form of an expected weekly rate for Treasury Bond tenders. Weekly issuance decisions will continue to take market conditions into account.
Treasury Bond issuance via tender will be around $5 billion in most weeks. This will typically be spread across three tenders. New maturities between 3-5 years and 10-12 years are likely to be established by syndication before 30 June 2020. Syndicated taps into existing lines will also be considered. It remains the AOFM’s intention to establish a new 30 year benchmark bond in the 2020-21 fiscal year if market conditions are suitable.
No Treasury Indexed Bond issuance is planned before mid-May. Issuance will resume when market conditions are suitable.
Treasury Note issuance will continue at an elevated rate and the maturity profile of Treasury Notes will be extended to 12 months.
Treasury Bond buybacks
Updated 20 March 2020
The Australian Office of Financial Management (AOFM) is committed to supporting the efficient operation of the market for Australian Government Securities (AGS) and continues to monitor conditions closely. Since 2016, the AOFM has repurchased short-dated Treasury Bonds via buyback tenders and in conjunction with some syndicated issues. In response to the announcement yesterday from the RBA, those operations will cease effective from today.
Response to economic stimulus package
Updated 12 March 2020
The AOFM is well-advanced in achieving the issuance program announced following the 2019-20 MYEFO. In relation to the Government today announcing measures in response to the impact of the Novel Coronavirus, the AOFM is updating the market on planned issuance for the current financial year.
As a result of the announced fiscal measures Treasury Bond issuance of $1.2 to $1.6 billion is planned for most coming weeks. An announcement about planned total issuance for this year will be made following the release of the 2020-21 Budget. The AOFM is closely monitoring market conditions and will be mindful of these when planning issuance for any particular week. No new maturities are planned for the remainder of this financial year.
There are no changes to planned Treasury Bond buybacks and again the AOFM will remain mindful of market conditions and be guided by intermediaries when deciding specific tender volumes and timing.
There are no changes to planned Treasury Indexed Bond issuance.
Treasury Note issuance will continue as needed for cash management purposes.