Issuance Program: MYEFO 2019-20
17 December 2019
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 2020).
Details of each week's transactions will be announced at midday on the preceding Friday.
Treasury Bond issuance for 2019-20 is expected to be around $55 billion, of which $27.2 billion has already been undertaken. It is planned to establish a new bond line maturing in May 2032 prior to 30 June 2020.
The issuance program will continue to be conducted via regular tenders. Larger tenders of newly established bond lines will occasionally be undertaken. Syndicated taps of existing long-dated bond lines will be considered in the context of prevailing market conditions.
Treasury Bond Buybacks
Regular buybacks of Treasury Bonds shorter than those comprising the primary three-year Treasury Bond futures contract basket will continue. On buyback tender days, a tender for the issuance of the same volume of longer-dated Treasury Bonds will usually be held.
Buybacks of around $15 billion of short-dated bonds maturing after 30 June 2020 are expected for the year. $6.6 billion in buybacks have been undertaken to date this financial year.
Treasury Indexed Bonds
Treasury Indexed Bond (TIB) issuance of $2.0 billion to $2.5 billion is planned for 2019-20 (in face value terms). $1.0 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 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.
Issuance of Treasury Notes will usually involve weekly tenders and will be focused around three and six month maturities.
$15.2 billion is currently on issue across five lines.