Issuance of Commonwealth Government Securities

12 May 2010

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 2010) and during the 2010-11 financial year (1 July 2010 to 30 June 2011).

Treasury Bonds

Issuance of Treasury Bonds to date this financial year (including the proceeds of the tender to be held today) totals approximately $46 billion in face value terms. Over the remainder of the current financial year Treasury Bond issuance of around $7 billion is planned.

  • In the period to 30 June 2010 Treasury Bond tenders will be held each Wednesday and Friday, with the exception of Friday, 25 June and Wednesday, 30 June. Tenders will not be held on 25 June and 30 June 2010 due to the proximity to the end of the financial year.
  • The total face value amount of Treasury Bonds on issue at end-June 2010 will be around $125 billion, an increase of around $47 billion on end-June 2009.

Treasury Bond issuance in 2010-11 is expected to be around $56 billion. After accounting for maturities of $18.8 billion this represents a net increase of $37 billion in the face value amount of Treasury Bonds on issue.

  • The face value amount of Treasury Bonds on issue at end-June 2011 is projected to be around $163 billion.

In 2010-11 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 Friday of the preceding week. The face value amount offered at each tender will be in the range $500 million to $1.2 billion.

Issuance in 2010-11 will include new Treasury Bond lines maturing in 2014, 2016, 2023 and 2025.

Treasury Indexed Bonds

Over the remainder of the current financial year, two tenders for the issue of Treasury Indexed Bonds are planned (25 May 2010 and 22 June 2010). The face value amount offered at each tender is expected to be $300 million.

  • The total face value amount of Treasury Indexed Bonds on issue at end-June 2010 will be around $11.4 billion, an increase of $5.4 billion on end-June 2009.

Issuance of Treasury Indexed Bonds in 2010-11 is expected to be around $4 billion. This is planned to include a new line maturing in 2030. The initial issue of the new indexed bond line is likely to be via a syndicated offering. 

Treasury Indexed Bonds will also be issued by tender each month, except for December 2010 and the month of the syndicated issue. The tenders will be held on Tuesdays with details of the bond lines and amounts to be offered announced at noon on the Friday of the preceding week.

  • The face value amount of Treasury Indexed Bonds on issue at end-June 2011 is projected to be around $14.7 billion.

Treasury Notes

Treasury Notes are a short-term discount security primarily used for within-year financing.

Over the remainder of the current financial year, it is planned to conduct tenders for the issue of Treasury Notes each Thursday. The total face value amount of Treasury Notes on issue at end-June 2010 is projected to be around $11 billion.

The volume of Treasury Notes on issue varies depending on the flows of Australian Government receipts and expenditures. It is planned to keep at least $10 billion of Treasury Notes on issue at all times so as to maintain a liquid market.

In 2010-11 the average volume of Treasury Notes on issue is expected to be higher than in 2009-10. The volume of Treasury Notes on issue at end-June 2011 is expected to be in the region of $20-$25 billion.

Last updated: 21 March 2014