AOFM gets record coverage for A$1.5B May 2030 bond tender

By Sophia Rodrigues

Published On 22 Apr 2020 , 11:16 AM

The AOFM has sold A$1.5 billion of 2.5% May 2030 government bond at a weighted average yield of 0.8460%. The cut-off yield was 0.8475% and the lowest yield was 0.8425%.

The coverage ratio was 4.29 times with A$6.43 billion of bids received. The coverage ratio for this bond was the highest in 30 issues so far (including today). The previous high was 4.19 times at the auction in November for A$800 million.

With this issue, the total outstanding issue of this bond has risen to A$29.4 billion, making it the fourth largest behind the April 2026, April 2027 and April 2029 bond. At the last auction on April 6 for A$2.0 billion, the bond was sold at a weighted average yield of 0.2450, and cutoff rate also of 0.2450%

LATEST SNIPPETS

Moody's warns profits of big four Australian banks under pressure

Profitability of the big four Australian banks is under pressures from low interest rates amid weak credit growt...

Published on : 25 Nov 2019 , 03:35 PM
Australia Oct Labor Data Dovish for RBA Dec Meeting

Australia's unemployment rate rose to 5.3% in October from 5.2%, due to 19,000 fall in employed numbers. This was...

Published on : 14 Nov 2019 , 12:00 AM
Why RBNZ will Hold OCR at 1%

I am a bit surprised with market reaction to RBNZ's inflation expectations survey yesterday. While I acknowledge...

Published on : 13 Nov 2019 , 12:00 AM
Market Pricing for RBNZ Cut --How Much is "Will do"?

In their markets outlook on Nov 11, economists at BNZ wrote, "RBNZ shouldn’t cut this week but probably wi...

Published on : 13 Nov 2019 , 12:00 AM
What does RBA's Gentle Turning Point Refer to?

RBA Governor Philip Lowe first referred to gentle turning point at the Parliamentary testimony in August when he said...

Published on : 07 Nov 2019 , 12:00 AM
Expect Dovish RBA Statement, Refined Forward Guidance

It is very unusual for both market and economists to be strongly expecting a particular outcome (hold) for a RBA boar...

Published on : 05 Nov 2019 , 12:00 AM
Australia: More Reason to Buy vs Rent Dwelling

More reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia&#...

Published on : 01 Nov 2019 , 12:00 AM
Will RBA Debate Further Easing at Nov Meeting?

Even before the RBA Nov board meeting begins, I am curious to find out if there will be a vigorous debate about...

Published on : 30 Oct 2019 , 07:21 AM
RBA Should Cut Now to Avoid QE

A few weeks back I wrote an article about how in theory the RBA could avoid QE, but to do so requires continuation of...

Published on : 31 Oct 2019 , 07:15 AM
Australia: Housing Group Numbers Disappoint Most in CPI

The most disappointing numbers in Australia Q3 CPI are the ones for housing group. Rent rose 0.4% y/y (and below 1.0%...

Published on : 30 Oct 2019 , 07:13 AM