Issuance of Australian Government Securities

16 December 2015

The Australian Government has released updated economic and budget forecasts.  This notice provides updated details of planned issuance of Australian 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 2016).

Treasury Bonds

Treasury Bond issuance in 2015-16 is expected to be around $86 billion in face value terms.  Issuance to date this financial year totals $43 billion.  After accounting for maturities and repurchases of $33 billion this represents net issuance of $53 billion.  The increase in issuance will meet the Government’s financing requirement and increase the cash balances managed by the AOFM, leaving the AOFM in a strong operational position.

A new Treasury Bond maturing on 21 November 2027 is planned to be issued by syndication in January or February 2016.  This will provide another issuance point around the 10-year part of the yield curve.

As previously announced, the AOFM plans to issue new Treasury Bonds maturing in late-2021, and 2028.  The 2028 Bond will be issued sometime in calendar 2016 but not prior to the release of the 2016-17 Budget.

Treasury Indexed Bonds

Issuance of Treasury Indexed Bonds in 2015-16 is expected to be around $4.5 billion in face value terms.  Issuance to date this financial year totals $2.6 billion.

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.

Last updated: 21 December 2015