16 December 2008
TREASURY BOND ISSUANCE – MARCH QUARTER 2009
On 15 December 2008, the Treasurer directed the AOFM to increase the volume of Treasury Bonds on issue by up to a further $5 billion. The proceeds of the increased issuance will be invested by the AOFM in financial assets that offset the cost and risk of the additional issuance. This includes bonds issued by State and Territory governments. Details are contained in the Treasurer’s Media Release No. 142 of 2008.
Treasury Bond issuance of up to $15.3 billion is now envisaged for the 2008-09 financial year (1 July 2008 to 30 June 2009). This consists of:
- $3.3 billion of issuance of the June 2014 Treasury Bond ($2.2 billion issued to date in 2008-09);
- $2.0 billion of issuance of the May 2021 bond line ($1.2 billion issued to date in 2008-09);and
- up to $10 billion into other existing bond lines depending on market demand for the bonds ($4.1 billion issued to date in 2008-09).
In the March quarter 2009 (1 January 2009 to 31 March 2009) Treasury Bond issuance is expected to be as follows:
- $800 million of issuance of the June 2014 Treasury Bond;
- $800 million of issuance of the May 2021 Treasury Bond; and
- around $2.5 to $3.0 billion of issuance of other bond lines. This issuance is to maintain liquidity in the market and will be targeted at lines that are in relatively short supply.
All tenders for Treasury Bonds will be confirmed at noon on the business day prior to the day on which the tender is to be conducted.