Issuance of Commonwealth Government Securities

14 May 2014

Issuance of Commonwealth Government Securities

This notice provides details of planned issuance of Commonwealth Government Securities by the Australian Office of Financial Management (AOFM) on behalf of the Australian Government over the remainder of the current financial year (that is, the period to 30 June 2014) and during the 2014-15 financial year (1 July 2014 to 30 June 2015).

Treasury Bonds

Treasury Bond issuance in 2013-14 is expected to be around $80 billion in face value terms and this will involve pre-funding for 2014-15 of around $4 billion in order to maintain the rate of issuance over the remainder of the current year. Treasury Bond tenders of around $700 million will be held on most Wednesdays and Fridays for the remainder of 2013-14. Details of the bond lines and amounts to be offered in a particular week will be announced at noon on the preceding Friday. Issuance to date in 2013-14 totals $71.6 billion in face value terms.

Treasury Bond issuance in 2014-15 is expected to be around $63 billion. After accounting for maturities of $27 billion this represents net issuance of $36 billion. Tenders will continue to be held on Wednesdays and Fridays with details of the bond lines and amounts to be offered in a particular week announced at noon on the preceding Friday.

The AOFM will consult with market participants concerning the issue of new bond lines.

Treasury Indexed Bonds

Over the remainder of the current financial year, three tenders for the issue of Treasury Indexed Bonds are planned. The face value amount offered at each tender will be in the range of $100 million to $200 million. This will take total issuance for the year to around $5 billion (not including the bonds issued in the recent conversion offer).

Issuance of Treasury Indexed Bonds in 2014-15 is expected to be around $4 billion. Two tenders for the issue of Treasury Indexed Bonds of at least $100 million each will be conducted in most months.

Treasury Notes

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.