Treasury Notes

Treasury Notes are a short-term discount security redeemable at face value on maturity. As such this security provides the purchaser with a single payment on maturity. Terms are generally less than six months. Treasury Notes are issued to assist with the Australian government’s within-year financing task.

All Treasury Notes are exempt from non-resident interest withholding tax (IWT).

Treasury Notes on issue

Treasury Notes on issue as at 20 May 2016
Maturity Face Value ($m AUD)
3 June 2016 1,500
29 July 2016 1,000
26 August 2016 2,000

Information Memorandum

The Information Memorandum for Treasury Notes [PDF 565KB | RTF 1.013MB] provides detailed information concerning these securities including the terms and conditions of their issue.

Pricing Formula for Treasury Notes

Treasury Notes are traded on a yield to maturity basis with the price per $100 face value calculated using the following pricing formula:

This formula solves for the price of $100 face value of a Treasury note using the yield to maturity, the settlement date and the maturity date. If you require further assistance please contact the Domestic Markets desk on + 61 2 9551 8313.


P = the price per $100 face value.
f = the number of days from the date of settlement to the maturity date.
i = the annual yield (per cent) to maturity divided by 100.

Settlement amounts are rounded to the nearest cent (0.5 cent being rounded up).

Working Example

As an example of the working of the formula, the price of a Treasury Note maturing on 23 January 2015  for settlement on 22 August 2014 assuming a yield to maturity of 2.48% is calculated to be $98.964479073 per $100 face value.

In this example, f = 154 and i = 0.0248.

If the trade was for Treasury Notes with a face value of $100 million the settlement amount would be $98,964,479.07.

Last updated: 20 May 2016