The Australian Office of Financial Management (AOFM) completed its 11th and final residential mortgage-backed securities (RMBS) divestment auction on 22 February, with the securities sold representing the remainder of the portfolio. The total amortised face value sold was A$312.8 million (US$244 million) from five tranches originally issued by Bendigo and Adelaide Bank, ING and ME Bank.
On 20 February, Northern Territory Treasury Corporation (NTTC) (Aa2) launched a new, 15-year domestic benchmark bond via ANZ. Indicative price guidance for the forthcoming deal is 75 basis points area over Australian Commonwealth government bond. Pricing is expected by 21 February.
Data on the maturity volume for various sectors of the Australian and New Zealand debt markets may provide only limited clues as to forthcoming issuance patterns, but it does shine a light on market development. In particular, issuance has tended to exceed maturities in most Australian dollar credit asset classes while New Zealand supply has lagged redemptions of late.