Record orderbook for Australia new 2031; Record issuance likely

By Sophia Rodrigues

Published On 26 Aug 2020 , 09:58 AM

Orderbook for the 1% 21 November 2031 Australia government bond has closed with a record A$65.5 billion, surpassing the previous high held by the December 2030 bond which attracted A$53.5 billion. The final price is 9bps over the implied bid yield on 10-year futures, compared with 8.5bps-9.5bps on Tuesday and a 8bps-11bps at the time of launch. This works out to yield of 1.035%

The issuance is expected to be A$18 billion to A$21 billion and could surpass the A$19 billion issuance size for the December 2030 bond syndicated in May.

Citigroup Global Markets Australia Pty Limited, Commonwealth Bank of Australia, UBS AG, Australia Branch and Westpac Institutional Bank are Joint-Lead Managers for the issue.

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