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Queensland Treasury Corporation (QTC) (AA+/Aa1) priced a syndicated increase to its 2026 benchmark bond on July 28. The deal is the first semi-government syndication priced in Australia this year, although it follows the issue via bookbuild of A$4.6 billion (US$3.2 billion) of new 2027 maturity bonds by the Australian Office of Financial Management on January 20.
Deal activity was rekindled in the final week of January. Bank of New Zealand got New Zealand's domestic market rolling for 2016 with a new covered bond and Royal Bank of Canada Sydney Branch and Queensland Treasury Corporation both priced new deals in Australia.
The Reserve Bank of New Zealand kept the official cash rate (OCR) on hold – at 2.5 per cent – at its January monetary policy meeting, while ramping up its easing bias. Analyst views are divided when it comes to the reserve bank's inflation view, as some see inflation as a clear drag on the OCR while others read into the post-decision statement a degree of comfort with core inflation.
On January 27, Royal Bank of Canada Sydney Branch (RBC Sydney) (AA-/Aa3) launched and priced a new, Australian dollar senior-unsecured domestic benchmark transaction. According to KangaNews data, the deal marks the fifth time the borrower has issued in the domestic market.
The four Kauri transactions printed in the month so far match a record for January, and New Zealand intermediaries say solid on- and offshore demand continues to underpin high-grade Kauri deals. But they also have reasons to expect a moderate year for supranational, sovereign and agency (SSA) volume – and not just because of wider market turbulence.