Issuance of Commonwealth Government Securities

23 October 2013

The Treasurer announced today that the Australian Government will make a one-off $8.8 billion grant this financial year to the Reserve Bank of Australia. Details of the announcement are contained in the Treasurer’s Media Release.

This notice provides updated details of planned issuance of Commonwealth Government Securities in the current financial year by the Australian Office of Financial Management on behalf of the Government in anticipation of this grant.

Treasury Bonds

Treasury Bond issuance in 2013-14 is now expected to be around $70 billion in face value terms. After accounting for maturities of $23 billion this represents net issuance of $47 billion.

Treasury Bond tenders of around $800 million will continue to be held on most Wednesdays and Fridays.

Issuance to date in 2013-14 totals $24.0 billion in face value terms.

Treasury Indexed Bonds

Treasury Indexed Bond issuance in 2013-14 is expected to be between $4 billion and $5 billion in face value terms.

Two tenders will be conducted in most months for the issue of Treasury Indexed Bonds over the remainder of 2013-14. The face value amount offered at each tender will be in the range of $100 million to $200 million.

Issuance to date in 2013-14 totals $2.7 billion in face value terms.

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.

Aussie Infrastructure Bonds

Some of the proceeds from the issuance of Commonwealth Government Securities may be used to finance the Government’s investment in the National Broadband Network, which are then reported as Aussie Infrastructure Bonds in the budget papers.