On 11 June, following the release of the Queensland state budget, Queensland Treasury Corporation (QTC) revealed a borrowing programme for the 2019/20 financial year of A$9.9 billion (US$6.9 billion). The requirement is a A$700 million reduction from the forward estimate in the 2018/19 forecast.
South Australian Government Financing Authority (SAFA) came to the fore in Australian alternative reference rate (ARR) innovation on 6 June, when it priced the first-ever deal linked to the Australian overnight index average (AONIA) reference rate. Deal sources say the rate is not meant to be a replacement for bank bill swap rate (BBSW), but a part of a broader suite of products Australian issuers and investors can access better to suit their needs.
The Reserve Bank of Australia (RBA)’s decision to cut the cash rate on 4 June surprised no-one. Analysts are focusing on a perceived lack of dovish intent in the RBA statement, while an economic forum conducted immediately prior to the cut identified the local housing market – rather than global trade uncertainty – as the primary likely driver of future rates direction.