Issuance of Australian Government Securities – Budget 2018-19

9 May 2018

This notice provides details of planned issuance and buybacks of Australian Government Securities by the Australian Office of Financial Management.

Treasury Bonds

Gross Treasury Bond issuance in 2018-19 is expected to be around $70 billion. Weekly Treasury Bond tenders of around $1 billion each week (in addition to tenders held in conjunction with buyback tenders) will be held for the remainder of 2017-18 and are planned for 2018-19.

It is planned to establish new bond lines maturing in September 2023, May 2030, December 2030 and May 2041. Regular tenders will continue to underpin the issuance program and syndication will be considered for the issue of some new bond lines. Syndicated taps of existing long-dated bond lines will also be considered.

In accordance with established practice, details of the bond lines and amounts to be offered will be announced at noon on the preceding Friday.

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. Buybacks can be undertaken via tenders, in conjunction with syndicated issues, or bilaterally with the Reserve Bank of Australia.

Two buyback tenders will be held during most months. On these days a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.

Buybacks of around $15 billion for bonds maturing after 30 June 2019 are expected in 2018-19.

Treasury Indexed Bonds

Three further tenders for the issue of Treasury Indexed Bonds (TIBs) are planned in 2017‑18.

TIB issuance in 2018-19 is expected to be around $5 billion (in face value terms). Two tenders for the issue of TIBs will be conducted in most months. A new long-dated TIB is planned to be issued.

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: 18 May 2018