Australia Looks Set for New Record Issuance, Orderbook at 2026 Syndication

• Published on
• 22 Sep 2020, 05:18 PM

By Sophia Rodrigues

The Australian government's 0.5% September 2026 bond syndication looks set for a record orderbook and likely record issuance, after the issue attracted over A$54 billion of orders by 1700 hours Sydney time Tuesday.

More demand is expected overnight, making it likely the orderbook would surpass A$75 billion by the close on Wednesday morning.

Given the strong demand for the bond, the Australian Office of Financial Management may print around A$25 billion of bonds, which would be a new record.

The initial price guidance for the bond was a spread of 24bps to 27bps over the implied bid yield for the primary three-year Treasury Bond futures contract. This has been tightened slightly to 24bps to 26bps, translating to indicative yield of 0.51% to 0.53%.

The book will close at 0930 hours Wednesday. The issue is expected to be priced on Tuesday and will settle on September 29.

ANZ, BofA Securities, Deutsche Bank and J.P. Morgan Securities Australia are Joint-Lead Managers for the issue.

Last month, the AOFM issued a record A$21 billion of November 2031 bonds after attracting A$66.1 billion of bids at the clearing price of 1.055%.

--Contact: Sophia@centralbankintel.com