Update: Australia 2051 Bond Syndicate Orderbook Tops A$20B

By Sophia Rodrigues

Orderbook for the Australian government's 1.75% June 2051 bond issue has surpassed A$20 billion by 1640 hours Sydney time Monday.

Around 1400 hours Sydney time, the book was over A$17.7 billion. The bond was launched earlier Monday.

The initial price guidance for the bond was a spread of 98bps to 105bps over the implied bid yield for the primary ten-year Treasury Bond futures contract. This was revised to 98bps to 102bps and translates to a yield of 1.89% to 1.93%.

The book is expected to close early Tuesday. The issue is expected to be priced on Tuesday and will settle on August 5.

ANZ, Commonwealth Bank of Australia, Deutsche Bank, J.P. Morgan Securities Australia Limited and UBS AG, Australia Branch are Joint-Lead Managers for the issue.

The Australian Office of Financial Management said there will be no further issuance of this Treasury Bond prior to November 2020 and it will mindful of the performance of the bond when considering the timing of future issuance.

Contact: Sophia@centralbankintel.com