Securities Lending Facility – Extension to Treasury Indexed Bonds

21 September 2009

Securities Lending Facility – Extension to Treasury Indexed Bonds

Operational Notice No. 18/2009 of 4 September 2009 announced details of the planned resumption of Treasury Indexed Bond (TIB) issuance. It was also announced that it was planned to expand the AOFM securities lending facility to enable borrowing of TIBs.

With effect from 22 September 2009, TIBs will able to be borrowed from the AOFM securities lending facility. All existing TIB lines will be able to be borrowed through the facility. The planned new 2025 TIB will be able to be borrowed through the facility following its issue.

Eligible market participants will be able to borrow TIBs through the facility on the same terms as Treasury Bonds are currently able to be borrowed through the facility.

Expansion of the securities lending facility to enable borrowing of TIBs is expected to enhance the liquidity of the TIBs market and the capacity of intermediaries to make two-way prices for TIBs.

 

Last updated: 31 July 2015