How to Buy AGS

Buying Australian Government Securities (AGS) may be done in two ways, in the Primary market and Secondary market.

Primary Market

To become a registered bidder in the AOFM Tender System, the following steps must be taken:

    1. It is a requirement to enter into a Registered Bidder Agreement with the AOFM which binds the Registered Bidder and AOFM to the AOFM Tender System Conditions of Operation. Please send the signed document to:
      Name: Australian Office of Financial Management
      Attention: Assurance Manager
      Address: Treasury Building, Langton Crescent, PARKES ACT 2600
    2. To bid at tenders, you will need access to the Yieldbroker DEBTS System. To register with Yieldbroker please contact:
      Yieldbroker Help Desk
      Telephone: 1800 220 550 (Toll free within Australia) or +61 2 9994 2890 (outside Australia)
      Email: helpdesk@yieldbroker.com
    3. Please note that all bids must comply with the applicable Information Memorandum (Treasury Bonds, Treasury Indexed Bonds and Treasury Notes).
    4. Tender announcements provide full details of the tender, including details of the stock that is being offered. Notification of tender announcements and results can be obtained by subscribing to the AOFM email service.
    5. Settlement is processed through the Austraclear System (other international settlement systems cannot be used). For direct settlement, you or a third party (such as a global custodian or financial institution) will need to be registered with Austraclear. To find out more about Austraclear and becoming a member, please refer to the Austraclear information located on the Australian Securities Exchange website. If you have any question please call the enquiries line on +61 2 9338 0000 (this is an ASX customer service number that also addresses Austraclear enquiries).

Secondary Market

Purchasing Treasury Bonds and Treasury Indexed Bonds in the secondary market is often the easier and most efficient way to acquire the securities.  The reasons for this are that there are a large number of international or Australian banks that are committed to making tight markets in all Australian Government Securities.  It is likely that you will know or have contact with some of them.

Below is a list (in alphabetical order) of registered bidders who have proven to make tight markets in Treasury Bonds and Treasury Indexed Bonds:

Security  Market Maker Sales Contact

Treasury Bonds

Treasury Indexed Bonds

Australia and New Zealand Banking Group Ltd

+61 2 8037 0220 (Sydney)

+65 6681 8968 (Singapore)

+44 20 3229 2070 (London)

Treasury Bonds

Treasury Indexed Bonds

Bank of America Merrill Lynch

+61 2 9226 5294 (Sydney)

+44 20 7995 5605 (London)

Treasury Bonds BNP Paribas

+61 2 9025 5005 (Sydney)

+65 6210 3331 (Singapore)

Treasury Bonds

Treasury Indexed Bonds

Citi

+61 2 8225 6450 (Sydney)

+65 6657 2800 (Singapore)

+44 20 7986 9521 (London)

Treasury Bonds

Treasury Indexed Bonds

Commonwealth Bank of Australia

+61 2 9117 0020 (Sydney)

+44 20 7329 6444 (London)

Treasury Bonds Daiwa Capital Markets Europe Limited

+65 6499 6513 (Singapore)

+44 20 7597 7720 (London)

Treasury Bonds

Treasury Indexed Bonds

Deutsche Bank AG

+61 2 8258 1444 (Sydney)

+44 20 7547 1931 (London)

+81 3 5156 6195 (Tokyo)

Treasury Bonds Goldman Sachs

+61 2 9320 1243 (Sydney)

+44 20 7552 0732 (London)

Treasury Bonds HSBC Bank Plc

+61 2 9255 2018 (Sydney)

+852 2822 1933 (Hong Kong)

Treasury Bonds

Treasury Indexed Bonds

JPMorgan Chase Bank, N.A.

+61 2 9003 7905 (Sydney)

 

Treasury Bonds Macquarie Bank Ltd. +61 2 8232 8300 (Sydney)
Treasury Bonds Mizuho Securities Asia Limited

+852 2685 2044 (Hong Kong)

+44 20 7090 6167 (London)

Treasury Bonds

Treasury Indexed Bonds

National Australia Bank Ltd.

+61 2 9295 1166 (Sydney)

+44 20 7726 2747 (London)

Treasury Bonds

Treasury Indexed Bonds

Nomura

+61 2 8062 8607 (Sydney)

+44 20 7103 0020 (London)

Treasury Bonds Royal Bank of Canada

+61 2 9033 3222 (Sydney)

+852 2848 1324 (Hong Kong)

Treasury Bonds TD Securities

+65 6500 8042 (Singapore)

+44 20 7628 4334 (London)

Treasury Bonds

Treasury Indexed Bonds

UBS AG

+61 2 9324 2222 (Sydney)

+44 20 7567 3645 (London)

Treasury Bonds

Treasury Indexed Bonds

Westpac Banking Corp

+61 2 8204 2711 (Sydney)

+65 6309 3877 (Singapore)

+44 20 7621 7620 (London)

+1 212 551 1806 (New York)

All these banks should make tight two way prices on a 24 hour basis in large volume, and all should provide closing rate sheets as well. Yields/prices for Australian Government Bonds can be sourced from a number of independent media sources such as Bloomberg (ACGB Govt) or Thomson Reuters (Treasury Bonds: 0#AUTSY= and Treasury Indexed Bonds: AU/ILB1).

Exchange-traded Australian Government Bonds

On the Australian Securities Exchange (ASX), Australian Government Bonds are traded in the form of CHESS Depositary Interests (CDIs) known as Exchange-traded Australian Government Bonds of which there are two types: Exchange-traded Treasury Bonds and Exchange-traded Treasury Indexed Bonds. These products have the appeal and convenience of being electronically bought and sold through the ASX in small or large parcels.

More information about investing and trading in Exchange-traded Australian Government Bonds can be found on the Australian Government Bonds website and in the Exchange-traded Australian Government Bonds section of the ASX website.

Last updated: 21 August 2017