BOJ’s warning shot reverberates

The Bank of Japan’s decision to ease its longstanding yield curve control policy, allowing the 10-year Japanese government bond yield to rise as high as 1 per cent, reverberated through global bond markets. While there is no expectation of an immediate, wide-scale change in Japanese investor behaviour, Australian fixed income sectors with a longstanding reliance on the Japanese bid have reasons to watch the policy path closely.

Conditions coalesce for Australian government-sector issuers

The annual roundtable for Australia’s leading government-sector borrowers, hosted by KangaNews and Westpac Institutional Bank in July, found the issuers in buoyant mood. They have been able to shake off market volatility and economic uncertainty to deliver positive funding outcomes – while the semi-government sector in particular may have hit a new level of liquidity and global relevance.

Semis take centre stage in Australian liquidity evolution

A step-change in supply dynamics has combined with positive demand factors to boost secondary turnover in Australian semi-government bonds. Local real-money investors generally agree with the suggestion that semi-government tradability has reached a new level, while bid-side liquidity is strong even for less heavily traded names.

Domestic high-grade issuers stay ahead of the GSS curve

Australia’s three largest state government bond issuers have all been active in the green, social and sustainability market for at least half a decade, while another peer joined their ranks in 2023 and the sovereign is preparing for a green-bond debut in calendar 2024. Frameworks, programmes and issuance approaches have not been static, however, as issuers seek to meet evolving investor needs and expectations.

AOFM picks banks to help structure Australia's green bond programme