AOFM sells A$1.5B 2023 bond below RBA's 0.25% target

By Sophia Rodrigues

Published On 08 May 2020 , 11:05 AM

The AOFM has sold A$1.5 billion of 5.5% April 2023 government bond at a weighted average yield of 0.2348%. The coverage ratio was 6.8233, falling short of the record at the previous auction where it was 7.2633. The lowest yield today was 0.2300% and the highest 0.2375%.

There were 50 bids in total, and only 14 were successful, and among them 6 got 100% allotment.

With this issue, this bond line has now increased A$30.2 billion. The last time this bond was issued was on April 24 when the weighted average issue yield was 0.2603%.

The bond was first issued in May 2011 for A$1.0 billion at a weighted average yield .of 5.4820%.

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