Issuance Program Update
2020-21 Issuance Program Guidance
Updated 3 July 2020
For 2019-20 Treasury Bond issuance was $128.2 billion and Treasury Indexed Bond issuance was $1.65 billion.
The following issuance guidance will apply until the 2020-21 Budget is handed down in October.
Treasury Bond issuance via tender will be at a rate of around $4-5 billion in most weeks.
New Treasury Bond lines maturing in 2025, 2026, 2031 and 2032 will be established by syndication in 2020-21. In addition, a new 30-year benchmark Treasury Bond line maturing in June 2051 will, subject to market conditions, be established by syndication before 30 September 2020. The AOFM will give notice of at least 10 days ahead of the launch of this new line.
Syndicated taps of existing long-dated Treasury Bond lines will remain under consideration consistent with past practice, however, the launch of the new 2051 line will be the priority.
There are no plans to resume regular Treasury Bond buyback tenders during 2020-21.
Two tenders of $100-200 million each for the issue of Treasury Indexed Bonds will be held in most months. Issuance choices will continue to focus on supporting the functionality of the market.
Treasury Note issuance will vary according to the AOFM’s cash management requirements. In most weeks, tenders of $2-4 billion can be expected. Maturities of up to 12 months will continue to be offered.
2019-20 Issuance Program Update
Updated 22 May 2020
Planned gross issuance of Treasury Bonds in 2019-20 is around $130 billion. Issuance currently stands at $105.2 billion. Treasury Bond issuance via tender will continue at around $5 billion in most weeks. Weekly issuance decisions will continue to take market conditions into account. Since the most recent update, a new 2-5 year and 10-12 year bond has been established by syndication. No further syndications of new maturities are planned until after the next update to issuance guidance, which will be in early-mid July.
Subject to market conditions, three tenders of Treasury Indexed Bonds are planned over the remainder of 2019-20. To date $1.3 billion has been issued in 2019-20.
Treasury Note issuance is planned to be around $3 to $5 billion each week dependent on cash management needs.
2019-20 Issuance Program Update
Updated 3 April 2020
The AOFM is providing this advice on planned issuance as an update to its previous advice of 12 March 2020.
The AOFM will not be offering guidance in the form of a planned gross issuance program ahead of the next official Budget update. Issuance guidance will take the form of an expected weekly rate for Treasury Bond tenders. Weekly issuance decisions will continue to take market conditions into account.
Treasury Bond issuance via tender will be around $5 billion in most weeks. This will typically be spread across three tenders. New maturities between 3-5 years and 10-12 years are likely to be established by syndication before 30 June 2020. Syndicated taps into existing lines will also be considered. It remains the AOFM’s intention to establish a new 30 year benchmark bond in the 2020-21 fiscal year if market conditions are suitable.
No Treasury Indexed Bond issuance is planned before mid-May. Issuance will resume when market conditions are suitable.
Treasury Note issuance will continue at an elevated rate and the maturity profile of Treasury Notes will be extended to 12 months.
Treasury Bond buybacks
Updated 20 March 2020
The Australian Office of Financial Management (AOFM) is committed to supporting the efficient operation of the market for Australian Government Securities (AGS) and continues to monitor conditions closely. Since 2016, the AOFM has repurchased short-dated Treasury Bonds via buyback tenders and in conjunction with some syndicated issues. In response to the announcement yesterday from the RBA, those operations will cease effective from today.
Response to economic stimulus package
Updated 12 March 2020
The AOFM is well-advanced in achieving the issuance program announced following the 2019-20 MYEFO. In relation to the Government today announcing measures in response to the impact of the Novel Coronavirus, the AOFM is updating the market on planned issuance for the current financial year.
As a result of the announced fiscal measures Treasury Bond issuance of $1.2 to $1.6 billion is planned for most coming weeks. An announcement about planned total issuance for this year will be made following the release of the 2020-21 Budget. The AOFM is closely monitoring market conditions and will be mindful of these when planning issuance for any particular week. No new maturities are planned for the remainder of this financial year.
There are no changes to planned Treasury Bond buybacks and again the AOFM will remain mindful of market conditions and be guided by intermediaries when deciding specific tender volumes and timing.
There are no changes to planned Treasury Indexed Bond issuance.
Treasury Note issuance will continue as needed for cash management purposes.