29 November 2011
Issuance of Commonwealth Government Securities
The Australian Government has released updated economic and budget forecasts. This notice provides details, consistent with those forecasts, of planned issuance of Commonwealth Government Securities by the Australian Office of Financial Management (AOFM) on behalf of the Australian Government over the remainder of the current financial year (that is, to 30 June 2012).
Treasury Bond issuance in 2011-12 is expected to be around $53 billion in face value terms (an increase of $2 billion on the issuance expected at the time of the 2011-12 Budget). Issuance to date this financial year totals approximately $32.2 billion in face value terms.
The last Treasury Bond tender in 2011 is planned to be held on 9 December. The first tender for the issue of Treasury Bonds in 2012 is planned to be held on 1 February.
Treasury Indexed Bonds
Treasury Indexed Bond issuance in 2011-12 is expected to be around $2 billion in face value terms (unchanged on the issuance expected at the time of the 2011-12 Budget). Issuance to date this financial year is $700 million in face value terms.
Subject to market conditions, a new Treasury Indexed Bond line with a term to maturity less than the existing 2025 line is being considered for introduction in the first half of 2012.
The next tender for the issue of Treasury Indexed Bonds is planned to be held on 21 February 2012.
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.
At the time of the 2011-12 Budget there was expected to be a rundown over the course of 2011-12 in the volume of Treasury Notes on issue. It is now expected that there will be no rundown in the volume of Treasury Notes on issue.
It is planned to keep at least $10 billion of Treasury Notes on issue at all times so as to maintain a liquid market.
Aussie Infrastructure Bonds
Some of the proceeds from the issuance of Commonwealth Government Securities in 2011-12 may be used to finance the Government’s investment in the National Broadband Network, which would then be reported as Aussie Infrastructure Bonds in the budget papers.