4 February 2009
Issuance of Commonwealth Government Securities in the Remainder of the Current Financial Year
Yesterday the Australian Government released updated economic and budget forecasts. Consistent with these forecasts, the Australian Office of Financial Management (AOFM) will increase its issuance of Treasury Bonds over the remainder of the current financial year (that is, to end-June 2009). It now intends to conduct two Treasury Bond tenders most weeks (generally on a Wednesday and a Friday) with the amount offered at each tender normally in the range of $500 million to $700 million. Total issuance over this period is expected to amount to between $22 billion to $24 billion.
- Details of the bond lines and amounts to be offered at tender in a particular week will be announced at noon on the Friday of the preceding week.
- In selecting bond lines to be offered at tender the AOFM will consult with bond market participants.
Consistent with the above, details of the bond lines and amounts to be offered at tender next week will be announced on 6 February 2009.
In addition, a tender for the issue of $600 million of the April 2015 Treasury Bond will be conducted on 6 February 2009.
There will continue to be a large within-year financing requirement as a result of differences in the timing of Budget receipts and expenditures. In the period ahead, Treasury Notes will be used to assist with the management of short term financing requirements. In addition, the AOFM may also use repurchase arrangements (repos) on its holdings of term financial assets for this purpose.
The AOFM will consult market participants over coming weeks about arrangements for the recommencement of Treasury Note issuance.