On 3 June, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a minimum A$50 million (US$34.8 million) increase to its April 2033 line. Indicative price guidance for the forthcoming deal is 132 basis points area over 10-year futures contract, equivalent to 117.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to sole lead manager UBS.
On 29 May, Western Australian Treasury Corporation (WATC) revealed an estimated term funding requirement for the 2020/21 financial year of A$2.6-4.5 billion (US$1.7-3 billion). The announcement followed the state treasurer’s economic update to the Western Australian parliament on 28 May.
Australia’s sovereign rating will be tested in the coming months as the ramifications of the COVID-19 crisis play out through the economy, according to Fitch Ratings. A newly placed negative outlook on Australia’s AAA rating relates to significant downside risks in the domestic economy, including household debt, as well as global factors such as newly levied trade barriers.