Will new Nov 2031 Australia govt bond syndication create a record?

By Sophia Rodrigues

Published On 26 Aug 2020 , 08:53 AM

Will the new 1% 21 November 2031 government bond set a new record for orderbook and issuance size? A good chance it will.

On Tuesday, the orderbook touched A$52.5 billion with price range of 8.5bps-9.5bps over the implied bid yield on 10-year futures. More orders are expected by the time the book closes this morning, but the orderbook could drop with further tightening in price.

The AOFM will also decide on the issuance size. There is a good chance it might exceed 2030's record A$19 billion issuance but it all depends on the quality of the orderbook.

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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