Update: Australia Issuing Record A$25B of 2026 Bonds at Syndication

• Published on
• 23 Sep 2020, 02:35 PM

By Sophia Rodrigues

The Australian government is issuing a record A$25 billion of the 0.5% September 2026 bond syndication following a record orderbook of over A$66.1 billion at the clearing price.

The deal is priced at 24bps over the implied bid yield for the primary three-year Treasury Bond futures contract and translates to indicative yield of around 0.47%.

The total orderbook was in excess of A$82.9 billion but at the clearing price it was significantly lower.

The indicative yield also fell following a move lower in three-year bond futures.

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 was tightened slightly to 24bps to 26bps, and further tightened to 24bps.

ANZ, BofA Securities, Deutsche Bank and J.P. Morgan Securities Australia are Joint-Lead Managers for the issue. Settlement is on Sep 29.

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