Issuance of Australian Government Securities – MYEFO 2018-19

18 December 2018

The Australian Government has released updated economic and budget forecasts. This notice provides updated details of planned issuance and buybacks of Australian Government Securities by the Australian Office of Financial Management (AOFM) over the remainder of the current financial year (that is, the period to 30 June 2019).

Details of each week’s transactions will be announced at midday on the preceding Friday.

Treasury Bonds

Treasury Bond issuance for the year is now expected to be around $52 billion compared with around $70 billion expected at the time of the 2018-19 Budget. Weekly Treasury Bond tenders of around $900 million (in addition to tenders held in conjunction with buyback tenders) will be held for the remainder of 2018-19. $30.3 billion of Treasury Bonds have been issued to date this year.

At the time of the 2018-19 Budget, the AOFM planned to establish new bond lines maturing in September 2023 and December 2030.  These lines are no longer planned to be issued. A syndication of an existing ultra-long bond line may still be considered.

Treasury Bond Buybacks

The AOFM regularly repurchases short-dated Treasury Bonds (shorter than those comprising the primary three year Treasury Bond futures contract basket) via buyback tenders, in conjunction with syndicated issues, and bilaterally with the Reserve Bank of Australia. On buyback tender days the AOFM will usually conduct a tender for the issue of the same volume of longer-dated Treasury Bonds.

Buybacks of around $15 billion of short-dated bonds maturing in future financial years are expected in 2018-19. $8.4 billion have been repurchased to date.

Treasury Indexed Bonds

Around $6 billion of Treasury Indexed Bond (TIB) issuance is planned for 2018-19 (in face value terms). $4.7 billion of TIBs have been issued to date this financial year.

Two tenders for the issue of TIBs are planned for 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: 18 December 2018