AOFM gives guidance for 2020/21 borrowing, including 2051 syndication

Friday, 03 July 2020

On 3 July, the Australian Office of Financial Management (AOFM) gave issuance guidance for the 2020/21 financial year, which will apply until the Federal government budget is handed down in October 2020. There is no formal overall volume stipulated, but the AOFM expects to continue to tender Treasury bonds at a rate of A$4-5 billion (US$2.8-3.5 billion) most weeks.

The AOFM intends to establish new Treasury bond lines maturing in 2025, 2026, 2031, 2032 by syndication in the 2020/21 financial year, as well as a June 2051 line before 30 September 2020. Syndicated taps of existing long-dated Treasury bond lines will also be considered but the launch of the new 2051 line is a priority.

The AOFM will also hold two tenders for Treasury indexed bonds in most months, for A$100-200 million each. Treasury note issuance will vary according to cash management requirements, expected to be A$2-4 billion in most weeks with maturities up to 12 months.

There are no plans to resume Treasury bond buyback tenders during the 2020/21 financial year. In 2019/20, the AOFM issued a total of A$128.2 billion in Treasury bonds and A$1.65 billion in Treasury indexed bonds.