Updated 29 September 2017
The AOFM announced its AGS issuance program on 10 May 2017. This webpage reflects that announcement and updates since that time. The issuance program is indicative only; the AOFM reserves the right to amend details.
Details of the lines and amounts to be offered each week will be announced at noon on the preceding Friday.
Issuance to date this financial year totals $20.1 billion.
Gross Treasury Bond issuance in 2017-18 is expected to be around $80 billion, most of which will be achieved via tenders. After accounting for maturities of $31 billion and buybacks of around $15 billion of Treasury Bonds maturing in future financial years, this represents net issuance of $34 billion.
Weekly Treasury Bond tender issuance will total around $1.4 billion each week (in addition to tenders held in conjunction with buyback tenders).
It is planned to establish new bond lines maturing in November 2022 and November 2029 in 2017-18.
A syndicated tap of the June 2039 bond line was conducted in July. Further syndicated taps of existing long-dated bond lines are planned, in accordance with previous advice.
A new May 2041 bond line is planned to be issued in early 2018-19. This is part of the AOFM’s commitment to support the operation of the 20 year Treasury Bond futures contract.
Treasury Bond Buybacks
The AOFM’s program of regular buybacks for Treasury Bonds shorter than those comprising the primary three year Treasury Bond futures contract basket will continue.
Two buyback tenders will be held during most months. Tenders will typically be held on a Monday. As per established practice, on these days a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.
$3.3 billion of short-dated Treasury Bonds maturing in future financial years have been repurchased this financial year. Buybacks of around $15 billion of Treasury Bonds maturing in future financial years are expected in 2017-18. The final volume will vary depending on the quantity of Treasury Bonds offered to the AOFM at syndicated deals, and purchases from the RBA.
Treasury Indexed Bonds
Issuance of Treasury Indexed Bonds (TIBs) to date this financial year totals $3.6 billion in face value terms.
Total TIB issuance in 2017-18 is expected to be around $5 billion. Two tenders for the issue of TIBs will be conducted in most months.
$3 billion of a new TIB maturing in November 2027 was issued via syndication in August 2017. The AOFM repurchased $2.7 billion of the November 2018 TIB line in conjunction with the issue of the new line.
Treasury Notes are a short-term discount security primarily used for within-year financing. The volume of Treasury Notes on issue varies depending on the flows of Australian Government receipts and expenditures.
Last updated: 29 September 2017