Australia sells record A$21 bln of new 2031 bond


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)

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


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