20 May 2008
TREASURY BOND ISSUANCE
Operational Notice No: 1/2008 of 14 May 2008 provided information on the planned issuance of Treasury Bonds during the 2008-09 financial year.
The Treasurer announced today that the Government will increase its issuance of Treasury Bonds as part of its commitment to the effective operation of Australia's financial markets. Details of the announcement are contained in the Treasurer's Media Release No. 58 2008.
As a result of this decision, Treasury Bonds with a face value of around $5 billion will be issued in 2008-09 in addition to the indicative program of $5.3 billion announced on 14 May. The additional issuance will increase the size of existing bond lines and will be in lines that are in shortest supply in the market, particularly mid-curve stocks.
The AOFM will announce a revised issuance program for Treasury Bonds in 2008-09 when legislation to allow the increase has been passed by Parliament. The revised program will take account of market conditions and the relative demand for different bond lines.
In its ongoing monitoring of market conditions the AOFM will assess whether further increases in issuance may be required to maintain the effective operation of the Treasury Bond and Treasury Bond futures markets.
No further issuance of Treasury Indexed Bonds is proposed under this initiative.