Treasury Bonds are medium to long-term debt securities that carry an annual rate of interest fixed over the life of the security, payable semi-annually.
All Treasury Bonds are exempt from non-resident interest withholding tax (IWT).
|Coupon and Maturity||Date of first issue||Face Value
|Term Sheet — PDF||Term Sheet — RTF|
|3.25% 21 October 2018||6 December 2013||9,625||0.27||AU3TB0000176||21 October 2018||86KB||902KB|
|5.25% 15 March 2019||17 January 2006||16,210||0.65||AU300TB01224||15 September 2018||85KB||901KB|
|2.75% 21 October 2019||18 July 2014||18,072||1.24||AU3TB0000184||21 October 2018||85KB||901KB|
|4.50% 15 April 2020||29 April 2009||26,579||1.68||AU3TB0000036||15 October 2018||85KB||903KB|
|1.75% 21 November 2020||10 April 2015||26,800||2.29||AU000XCLWAN8||21 November 2018||85KB||902KB|
|5.75% 15 May 2021||11 September 2007||30,199||2.62||AU0000XCLWM5||15 November 2018||84KB||903KB|
|2.00% 21 December 2021||18 January 2017||17,800||3.30||AU000XCLWAT5||21 December 2018||84KB||903KB|
|5.75% 15 July 2022||7 April 2010||25,000||3.53||AU3TB0000051||15 July 2018||84KB||901KB|
|2.25% 21 November 2022||11 October 2017||11,900||4.12||AU000XCLWAW9||21 November 2018||358KB||903KB|
|5.50% 21 April 2023||18 May 2011||24,100||4.21||AU3TB0000101||21 October 2018||85KB||901KB|
|2.75% 21 April 2024||20 June 2012||25,500||5.29||AU3TB0000143||21 October 2018||85KB||902KB|
|3.25% 21 April 2025||22 May 2013||27,900||6.04||AU3TB0000168||21 October 2018||85KB||902KB|
|4.25% 21 April 2026||12 March 2014||32,400||6.63||AU000XCLWAI8||21 October 2018||85KB||902KB|
|4.75% 21 April 2027||20 October 2011||29,700||7.25||AU3TB0000135||21 October 2018||85KB||901KB|
|2.75% 21 November 2027||20 January 2016||28,000||8.18||AU000XCLWAQ1||21 November 2018||85KB||901KB|
|2.25% 21 May 2028||11 May 2016||26,300||8.73||AU000XCLWAR9||21 November 2018||85KB||901KB|
|2.75% 21 November 2028||22 February 2017||23,500||8.94||AU000XCLWAU3||21 November 2018||85KB||901KB|
|3.25% 21 April 2029||10 October 2012||22,700||9.05||AU3TB0000150||21 October 2018||85KB||902KB|
|2.75% 21 November 2029||17 January 2018||12,300||9.67||AU000XCLWAX7||21 November 2018||308KB||788KB|
|2.5% 21 May 2030||8 June 2018||3,500||10.14||AU0000013740||21 November 2018||308KB||788KB|
|4.50% 21 April 2033||19 November 2013||13,900||11.09||AU000XCLWAG2||21 October 2018||85KB||902KB|
|2.75% 21 June 2035||24 March 2015||6,950||13.40||AU000XCLWAM0||21 December 2018||365KB||903KB|
|3.75% 21 April 2037||15 October 2014||11,200||13.66||AU3TB0000192||21 October 2018||85KB||901KB|
|3.25% 21 June 2039||14 October 2015||8,000||15.21||AU000XCLWAP3||21 December 2018||85KB||903KB|
|3.00% 21 March 2047||12 October 2016||12,500||18.86||AU000XCLWAS7||21 September 2018||87KB||889KB|
This table is updated on a weekly basis.
*If the coupon interest payment date is not a business day, payment will be made on the next succeeding business day without payment of additional interest.
Treasury Bond Yields
Are easily accessible via:
- Reserve Bank of Australia
- Bloomberg: ACGB Govt
- Thomson Reuters: 0#AUTSY=
Active market makers
There is an active secondary market for Treasury Bonds. The Australian Financial Markets Association (AFMA) has published conventions that apply to trading in the over-the-counter market of long-dated debt securities such as Treasury Bonds.
Active Treasury Bond market makers are listed in How to Buy AGS.
The AOFM holds tenders for Treasury Bonds on a regular basis. Currently, tenders for the issue of Treasury Bonds are held on Wednesdays, Fridays and some Mondays. For further details, please see Forthcoming AOFM Tenders. To receive tender announcements and results via email, you may subscribe to the AOFM email service.
Similar to most fixed income securities trading in Australia, Treasury Bonds are both quoted and traded on a yield to maturity basis rather than on a price basis. This means the price is calculated after agreeing on the yield to maturity. The price is calculated by inputting the yield to maturity into the appropriate pricing formulae.
The price per $100 face value is calculated using the following pricing formulae:
In these formulae:
Settlement amounts are rounded to the nearest cent (0.5 cent being rounded up).
As an example of the working of the basic formula, the price of the 2.75% 21 November 2028 Treasury Bond, assuming a yield to maturity of 2.8300% per annum and settlement date of 27 October 2017, is calculated to be $100.431.
In this example, i = 0.014150 (i.e. 2.830 divided by 200), f = 25, d = 184, g = 1.375 (i.e. half of 2.75) and n = 22.
If the trade was for Treasury Bonds with a face value of $50,000,000 the settlement amount would be $50,215,500.00.
Ex-Interest Treasury Bonds
The ex-interest period for Treasury Bonds is seven calendar days. With ex-interest Treasury Bonds the next coupon payment is not payable to a purchaser of the bonds. In this case, calculation of an ex-interest price is effected by the removal of the ‘1′ from the term in formula (1), thereby adjusting for the fact that the purchaser will not receive a coupon payment at the next interest payment date.
Near-Maturing Treasury Bonds
When a Treasury Bond goes ex-interest for the second last time it is treated as a special case. In this case formula (3) applies up until the record date for the final interest payment and formula (4) applies from the time the bond goes ex-interest for the final time. There may be a slight discontinuity in the progress of the price of the bond around the time the bond goes ex-interest for the second last time but market participants can, if they wish, allow for this in their trading.
Where the maturity date coincides with a weekend or public holiday, the commonly accepted practice is to price near-maturing Treasury Bonds according to the actual date the principal and final interest are paid (and not the nominal maturity date).
Last updated: 13 July 2018