Updated 31 October 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 to date this financial year totals $20.5 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.
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.
A May 2030 bond line was first issued in June. A May 2041 bond line was established in July via a $3.6 billion syndication.
The AOFM has announced that no further new bond lines will be issued before the AOFM’s next issuance program update, which is expected to be at the time the Australian Government releases its Mid-Year Economic and Fiscal Outlook (MYEFO).
Treasury Bond Buybacks
The AOFM repurchases short-dated Treasury Bonds via buyback tenders, in conjunction with some syndicated issues, and bilaterally from the Reserve Bank of Australia.
Treasury Bonds shorter than those comprising the primary three year Treasury Bond futures contract are eligible for repurchase. The AOFM will announce when it stops buying back particular bond lines via tender. The October 2019, April 2020 and November 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.
$12.0 billion of short-dated Treasury Bonds have been repurchased to date this financial year, of which $5.6 billion were of bonds maturing after 30 June 2019. Buybacks of around $15 billion of bonds maturing in future financial years are expected in 2018 19.
Treasury Indexed Bonds
Issuance of Treasury Indexed Bonds (TIBs) to date this financial year totals $4.35 billion in face value terms.
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.
A February 2050 TIB was established in September via a $3.75 billion syndication.
$2.1 billion of the August 2020 TIB was repurchased in conjunction with the February 2050 syndication. $1.5 billion of the November 2018 TIB was repurchased in conjunction with the May 2041 syndication.
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: 31 October 2018