Operational Notice: 2004-05 Australian Dollar Interest Rate Swap Program

12 July 2004

Op Notice No. 12/2004

This notice provides details of the Australian Office of Financial Management’s (AOFM) intended Australian dollar interest rate swap program for the 2004-05 financial year.

In 2004-05 the AOFM will be seeking to transact around $6 billion of swaps with terms of at least 5 years that require the Commonwealth to receive fixed interest rate obligations and around $3½ billion of swaps with terms
up to 4 years that require the Commonwealth to pay fixed interest rate obligations. Execution of these swaps will be dependent upon prevailing market conditions.

The AOFM will execute swaps in 2004-05 using the same procedures employed in 2003-04. These procedures are described in Operational Notice No: 3/2004 issued on 20 February 2004 and Operational Notice No: 15/2003 issued on 8 October 2003.

The AOFM will continue to manage the transition of the Australian Government’s net portfolio of Commonwealth Government Securities to the portfolio benchmark announced in Press Release No: 1/2003 issued on 18 September 2003. Subject to market conditions and budget developments, it is expected that the transition will be completed by end-June 2005. More information on how the AOFM uses swaps is available on the AOFM website.

Last updated: 8 February 2016