Proposed changes to the Commonwealth’s Short-term Funding Instrument – Treasury Notes

26 June 2000

Date: 26 June 2000

Treasury Notes are short-dated instruments issued by the Commonwealth
Government through the Australian Office of Financial Management (AOFM)
for the purposes of managing within-year mismatches in the timing
of the Commonwealth’s receipts and outlays. Treasury Notes also assist
the Reserve Bank of Australia (RBA) in its liquidity management operations.
Treasury Notes are currently issued in fixed-term maturities of 5,
13 and 26 weeks.

From early in the new financial year, the AOFM will cease the issue of
Notes with these limited fixed-term maturities. Instead, Notes of
variable-term maturities will be issued, with maturity dates designed,
broadly, to co-incide with peak Commonwealth revenue collection dates
which occur in the months of January, April, July and October each year.
The AOFM and Bank would also reserve the right, on occasion, to issue
Treasury Notes to other dates which would promote efficient cash management.

The move will both provide for enhanced flexibility in the management
of the Commonwealth’s within year cashflows – providing for
a better matching of peak cashflow dates to Note maturities –
and allow for the consolidation of the Commonwealth’s short-term
financing instruments into comparatively few, more highly liquid, lines
of stock at any one time.

It is expected that the new type of Note will be issued from around mid July.
A further announcement will be made shortly before the first issue.

Further information can be obtained from:

Mr Mike Allen
Chief Executive Officer
Australian Office of Financial Management
(02) 6263 2713

Mr Frank Campbell
Head of Domestic Markets
Reserve Bank of Australia
(02) 9551 8300

Last updated: 5 March 2014