Treasury Notes

Treasury Notes are a short-term discount security redeemable at face value on maturity. Terms are less than twelve months. Treasury Notes are issued to assist with the Australian government’s short-term funding requirements.

Treasury Notes on issue


Maturity	Outstanding (face value, AUD million)	ISIN
13 Dec 2024	6,000	AU2CLT131245
31 Jan 2025	7,000	AU2CLT310153
14 Feb 2025	5,000	AU2CLT140253
28 Feb 2025	2,000	AU2CLT280257
14 Mar 2025	3,000	AU2CLT140352
28 Mar 2025	3,000	AU2CLT280356
11 Apr 2025	2,000	AU2CLT110454

Treasury Notes on issue as at 22 November 2024. This table is updated weekly.

Information Memorandum

Pricing Formula

Treasury Notes are quoted and traded on a yield to maturity basis rather than on a price basis. This means that the price is calculated by inputting the yield into the pricing formula.

The price per $100 face value is calculated using the following pricing formula:

$\Large P = \frac{100}{1 + \LARGE\left(\frac{f}{365}\right) i}$

In this formula:

$\large P = $ the price per $100 face value.

$\large f = $ the number of days from the date of settlement to the maturity date.

$ \large i = $ the annual yield to maturity (per cent) divided by 100.

Worked Example

Consider a Treasury Note maturing on 21 February 2020, with settlement on 12 September 2019 and a yield to maturity of 1.00 per cent.

$\Large P = \Large \frac{100}{1 + \LARGE \left(\frac{f}{365}\right) i}$

where:

$ f = 162$, the number of days from 12 September 2019 to 21 February 2020

$ \large i=\Large \frac{1.00}{100}= $ $ 0.01 $

$\Large P = \Large \frac{100}{1 + \LARGE\left( \frac{f}{365}\right) i} = \frac{100}{1 + \LARGE\left( \frac{162}{365}\right) \times 0.01} $

$\Large P = 99.558125580$

Market makers

The AOFM acknowledges that a secondary market for Treasury Notes remains under-developed relative to that of other Australian Government Securities. This makes it difficult to identify market makers in the same way as for Treasury Bonds and Treasury Indexed Bonds.

For the benefit of wholesale investors, the AOFM has listed (alphabetically) the names and contact details of institutions who are regular participants in Treasury Note tenders. Of this group, five institutions can be distinguished from the remainder based on the consistent level of their activity in the primary market (see first row, in alphabetical order). As the market evolves the AOFM will update this information accordingly.