Update: Australia's 2026 Bond Syndication Attracts A$83B Orderbook

• Published on
• 23 Sep 2020, 09:05 AM

By Sophia Rodrigues

The Australian government's 0.5% September 2026 bond syndication has received a record orderbook of over A$82.9 billion an hour before the book close.

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 was tightened slightly to 24bps to 26bps, and has further tightened to 24bps, translating to indicative yield of 0.52%.

The book will close at 0930 hours Wednesday.

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