Insight: Strong Demand for 2030 Australia Bond Syndication

• Published on
• 13 May 2020, 10:16 AM

By Sophia Rodrigues

Australia’s first 10-year government bond issuance via syndication is attracting strong demand and could lead to a revision in guidance.

The issuance is therefore likely to be big compared with the past, with some chance that it could beat the recent record of A$13 billion for the 2024 bond syndication.

The Australian Office of Financial Management is pricing the bond later Wednesday and the book is believed to have been closed. The AOFM may announce revised guidance and volume range.

AOFM had announced the price guidance for the 1% December 2030 Treasury bond at a spread of 7bps to 10bps over the implied bid yield for the 10-year futures.

ANZ, Citigroup, CBA and UBS are Joint-Lead Managers for the issue.

The closest to a 10-year bond issued through syndication was the 2.75% November 2029 bond issued in January 2018 where the government raised A$9.6 billion.

--Contact: sophia@centralbankintel.com