Updated 30 June 2018
The AOFM announced its planned AGS issuance program following the release of the Australian Government’s 2018-19 Budget. This webpage reflects that announcement and changes since that time. The issuance program is indicative only because a range of factors will influence the actual amount of issuance.
Details of the lines and amounts to be offered each week will be announced at noon on the preceding Friday.
Issuance of Treasury Bonds in 2017-18 totalled $75.5 billion.
Gross Treasury Bond issuance in 2018-19 is expected to be around $70 billion. Weekly Treasury Bond tenders of around $1 billion each week (in addition to tenders held in conjunction with buyback tenders) will be held.
It is planned to establish new bond lines maturing in September 2023, December 2030 and May 2041. The December 2030 is planned to be issued in the second half of the 2018-19 financial year; and the May 2041 is planned to be issued later this calendar year.
Regular tenders will continue to underpin the issuance program and syndication will be considered for the issue of some new bond lines. Syndicated taps of existing long-dated bond lines will also be considered.
During 2017-18, the AOFM established new November 2022, November 2029 and May 2030 bond lines. Syndicated taps of the June 2039 and March 2047 bond lines were conducted.
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. The AOFM will announce when it stops buying back particular bond lines via tender. The October 2019 and April 2020 bond lines are currently in the repurchase window.
Two buyback tenders will be held during most months. Tenders will typically be held on a Monday. On these days a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.
$15.2 billion of short-dated Treasury Bonds maturing in future financial years were repurchased in 2017-18.
Buybacks of around $15 billion for bonds maturing after 30 June 2019 are expected in 2018-19.
Treasury Indexed Bonds
Issuance of Treasury Indexed Bonds (TIBs) in 2017-18 totalled $5.6 billion (in face value terms).
$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.
TIB issuance in 2018-19 is expected to be around $5 billion (in face value terms). Two tenders for the issue of TIBs will be conducted in most months. It is planned to issue a new TIB maturing in 2050 between September and November 2018.
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 June 2018