Issuance of Australian Government Securities – Budget 2019-20

3 April 2019

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

Treasury Bonds

Treasury Bond issuance for the current year is expected to total around $54 billion. In 2019-20, issuance of around $58 billion is planned. It is planned to establish new bond lines maturing in June 2031 and May 2032 between now and 30 June 2020.

Regular tenders will underpin the issuance program. Larger tenders of newly established bond lines will occasionally be undertaken. Syndicated taps of existing long-dated bond lines will be considered.

Treasury Bond Buybacks

Regular buybacks of 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.  On buyback tender days, a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.

Buyback tenders for the April 2020, November 2020 and May 2021 Treasury Bonds are planned for the remainder of 2018‑19.

Buybacks of around $15-20 billion of short-dated bonds maturing after 30 June 2020 are expected in 2019‑20.

Treasury Indexed Bonds

To complete planned total issuance for the year of $5.9 billion, five further tenders for the issue of Treasury Indexed Bonds (TIBs) are planned in 2018‑19.

TIB issuance in 2019-20 is expected to be around $2.5 billion (in face value terms). Two tenders will be conducted in most months.

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: 3 April 2019