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%

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