Markets

Australia sells record A$21 bln of new 2031 bond

Credit: REUTERS/DANIEL MUNOZ

Australia's government on Wednesday sold A$21 billion ($15.11 billion) of a new 2031 bond, the largest sale on record, underlining appetite for the country's AAA-rated sovereign debt.

SYDNEY, Aug 26 (Reuters) - Australia's government on Wednesday sold A$21 billion ($15.11 billion) of a new 2031 bond, the largest sale on record, underlining appetite for the country's AAA-rated sovereign debt.

The Australian Office of Financial Management (AOFM), which manages government debt, said the syndicated offer drew A$66 billion in bids, more than three times the offering.

The 1.00% Nov. 21, 2031 Treasury Bond was priced at a yield to maturity of 1.055%. Settlement of the issue is on Sept. 2.

Australia's debt is underpinned by the central bank's "yield curve control" policy aimed at keeping three-year yields at 0.25%.

The Reserve Bank of Australia (RBA) cut policy interest rates to a record low 0.25% at an emergency meeting in March and has pledged to keep policy accommodative for as long as is required.

Citigroup, Commonwealth Bank of Australia, UBS and Westpac were joint-lead managers for the bond issue.

($1 = 1.3900 Australian dollars)

(Reporting by Swati Pandey; Editing by Christopher Cushing)

((swati.pandey@thomsonreuters.com; +61 2 9321 8166; Reuters Messaging: twitter.com/swatisays))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More