19 Nov 2013
AUD bids expected on largest Australian bond deal issuance
FXstreet.com (Barcelona) - AUD looks poised to enjoy steadier bids in the near term as a result of the largest AOFM (Australian Office of Financial Management) bond deal on record.
The AOFM is due to issue a new 4.5% April 21 2033 Treasury bond which has raised AUD5.9b at a yield to maturity of 4.86%. According to Brent Hansen, Analyst at IFR Markets: "It will catch eye of offshore investors Sovs, CB's, global funds and the like, with the settlement of issue next Tues 26 Nov."
John Weavers from IFR Markets adds: "The offering, which market sources believe to be the largest Australian dollar syndicated deal, takes the Commonwealth Government’s total bond issuance to AUD35.5bn for this fiscal year (starting July 1). Syndicated offerings, rather than the usual tenders, enable the AOFM to complete immediately a large and liquid new bond offering."
The AOFM is due to issue a new 4.5% April 21 2033 Treasury bond which has raised AUD5.9b at a yield to maturity of 4.86%. According to Brent Hansen, Analyst at IFR Markets: "It will catch eye of offshore investors Sovs, CB's, global funds and the like, with the settlement of issue next Tues 26 Nov."
John Weavers from IFR Markets adds: "The offering, which market sources believe to be the largest Australian dollar syndicated deal, takes the Commonwealth Government’s total bond issuance to AUD35.5bn for this fiscal year (starting July 1). Syndicated offerings, rather than the usual tenders, enable the AOFM to complete immediately a large and liquid new bond offering."