Australian Government, the Australian Office of Financial Management

Erroneous Tender Bids Policy

Treasury Bond and Treasury Indexed Bond Tenders

Bids submitted at yields more than five basis points below the prevailing secondary market yield (as judged by AOFM) will be judged to be erroneous, and amended to yields five basis points below the secondary market yield, with allocations made accordingly.

Where a Treasury Bond or Treasury Indexed Bond has no observable secondary market yield (for example at the first issue of the security), the AOFM will use judgement to determine a reasonable comparison yield for bids.

Treasury Note Tenders

Bids submitted at yields more than twenty basis points below the prevailing secondary market yield (as judged by AOFM) will be judged to be erroneous, and amended to yields twenty basis points below the secondary market yield, with allocations made accordingly.

Where a Treasury Note has no observable secondary market yield (for example at the first issue of the security), the AOFM will use judgement to determine a reasonable comparison yield for bids.

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