Updated 5 March 2018
The AOFM announced its planned AGS issuance program on 19 December 2017, following the release of the Australian Government’s Mid Year Economic and Fiscal Outlook (MYEFO). This webpage reflects that announcement and changes since that time, including the AOFM’s response to the Australian Government’s purchase of New South Wales’ and Victoria’s shareholdings of Snowy Hydro Limited. The issuance program is indicative only because a range of factors will influence the actual amount of issuance for the year.
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 $56.8 billion.
Gross Treasury Bond issuance in 2017-18 of around $74 billion was announced at MYEFO. After accounting for maturities of $31.2 billion and buybacks of around $15 billion of Treasury Bonds maturing in future financial years, this represented net issuance of $27.8 billion.
The Government’s $6 billion Snowy Hydro Limited purchase will be funded via additional issuance over the course of calendar 2018.
In January, the AOFM issued $9.6 billion of a new November 2029 bond line via syndication. A new November 2022 bond line was established in October 2017.
Syndicated taps of the June 2039 and March 2047 bond lines have been conducted in 2017-18. Further syndicated taps of existing long-dated bond lines are planned.
A new May 2041 bond line is planned to be issued in the first half of 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. On these days a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.
$10.9 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 $4.5 billion, in face value terms.
Total TIB issuance in 2017-18 is expected to be around $5-6 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: 5 March 2018