The AOFM conducts regular buyback tenders for short-dated Treasury Bonds. This assists the AOFM in its cash management task around the time of bond maturities and contributes to an orderly and efficient Treasury Bond market.
Buyback tenders are conducted by the AOFM using the AOFM Tender System, which is accessed via the Yieldbroker DEBTS System. Offers may only be submitted by parties that are registered with the AOFM.
- To register requires entering into a Registered Bidder Agreement with the AOFM, which binds the Registered Bidder and the AOFM to the AOFM Tender System Conditions of Operation. For more information about becoming a Registered Bidder, please contact the AOFM.
- All offers must comply with the Information Memorandum for Treasury Bonds.
- Erroneous offers will be treated in the manner described in the AOFM’s Erroneous Tender Offers Policy (see below).
Tender announcements provide full details of each tender, including details of the stock that is being repurchased. Tender results are announced as soon as possible after the close of the tender.
- Notification of tender announcements and results can be obtained by subscribing to the AOFM email service.
Erroneous Tender Offers Policy
Treasury Bond Buyback Tenders
Offers submitted at yields more than five basis points above the prevailing secondary market yield (as judged by the AOFM) will be judged to be erroneous, and amended to yields five basis points above the secondary market yield, with offers accepted accordingly. Where a Treasury Bond has no observable secondary market yield, the AOFM will use judgement to determine a reasonable comparison yield for offers.
Last updated: 13 November 2017