ANZ analysts see total A$300B AGS issuance now to June 2021

By Sophia Rodrigues

Published On 20 May 2020 , 10:21 AM

ANZ analysts expect total issuance of Australian government securities to exceed A$300 billion between now and June 30, 2021. 

Current total outstanding government bonds, including this week's activities, is around A$650 billion, and this would reach A$850 billion by the end of next year, they say. This would mean new money requirement of A$200 billion in addition to at least A$93 billion between now and June 30, and thus total issuance across bonds, linkers and Treasury notes to be over A$300 billion, they say.

Most new issuance would be concentrated in the 3y-6y and 10y-12y parts of the curve, and likely new bond lines will December 2025, December 2031 and March 2051, they forecast.

Total T-notes issuance would be around A$212 billion between now and end-June next year, taking the outstanding at the end of that period to A$89 billion from A$46.8 billion currently. Net linker issuance would be between A$5 billion to A$10 billion, with A$45.5 billion outstanding by end-June 2021, but there's a risk it would be lower because of volatile CPI, ANZ analysts estimate.

LATEST SNIPPETS

Australia's 2031 bond syndication may hit record orderbook

Orderbook for the Australian government's 1% 21 November 2031 bond issue may hit a record high, likely surpassing...

Published on : 25 Aug 2020 , 04:57 PM
RBA buying A$2B of April 2023, 2024 again

The RBA remains determined to keep 3-year Australian government bonds near its 0.25% target, offering to bu...

Published on : 13 Aug 2020 , 11:29 AM
RBA shows more determination to keep 3-year AGS at 0.25% target

The RBA appears very determined to ensure 3-year Australian government bonds stays near its 0.25% target, doubling th...

Published on : 12 Aug 2020 , 11:33 AM
RBA buys A$1.0B govt bonds but 2023 yld still slightly above 0.25%

The RBA bought A$1.0 billion of Australian government bonds at the third bond-buying auction since last Wednesday but...

Published on : 10 Aug 2020 , 03:56 PM
RBA focuses on Nov 2022 bond at auction but yield still higher than 2023

At the bond-buying auction today, the RBA focused much of its purchases on the November 2022 government bond, spendin...

Published on : 06 Aug 2020 , 04:51 PM
RBA to buy AGS for second straight day

The RBA has announced bond-buying via auction for the second consecutive day, keeping the notified amount unchanged a...

Published on : 06 Aug 2020 , 11:42 AM
Weighted average yield at RBA's 2023 bond-buying 0.2575%

The RBA bought A$500 million of 5.5% April 2023 Australian government bonds on Wednesday at a cut-off of 0.2525% and...

Published on : 06 Aug 2020 , 09:02 AM
RBA buying only A$500m of one bond line -- April 2023

The RBA is buying A$500 million of April 2023 government bonds as part of its bond-buying program which it resumed We...

Published on : 05 Aug 2020 , 12:45 PM
AOFM raises A$15B from sale via syndication of new 2051 bond

The Australian government has raised $15 billion from the sale of the new 1.75% June 2051 bond via syndication,...

Published on : 28 Jul 2020 , 11:58 AM
Australia's 2030 bond syndication record likely unbeaten

It appears Australia's A$19 billion debt syndication for the 2030 bond in May will remain a record, with whi...

Published on : 14 Jul 2020 , 10:46 AM