TREASURY NOTE ISSUANCE
Indicative tender schedule
In May 2002 it was announced that future Treasury note issuance would be limited to that required for Commonwealth within year funding purposes. This move has resulted in the less regular issuance of Treasury notes than in the past.
Consultations with financial participants have suggested there would be benefit in the AOFM publishing a forward schedule of when Treasury notes are likely to be issued.
It has been decided to publish a schedule indicating the weeks in which Treasury note tenders are expected to be conducted. The schedule will be updated monthly at around the start of each calendar month and will indicate when tenders are expected to be conducted over the forthcoming two months.
The following is the schedule for the period to end December 2002.
|Week Commencing||Tender Expected|
|18 November 2002||Yes|
|25 November 2002||Yes|
|2 December 2002||Yes|
|9 December 2002||Yes|
|16 December 2002||Yes|
|23 December 2002||No|
|30 December 2002||No|
It should be noted that the schedule is indicative only and the Commonwealth reserves the right to amend the schedule at any time.
Volume on issue in individual lines
Under the new arrangements for Treasury note issuance announced in May 2002 it was stated that Treasury note issuance would no longer be concentrated into fixed maturity dates.
Consistent with the revised arrangements, in future it is planned to cap the volume on issue in individual Treasury note lines (i.e. Treasury notes that mature on the same day) at $2 billion (face value). As a general rule it is expected that the volume on issue at maturity for most Treasury note lines will be between $1 billion to $2 billion.
These arrangements will enhance the capacity to offer Treasury notes with a greater variety of maturity dates.