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4 May 2016
AUD: ACGB record issuance ahead – TDS
Research Team at TDS, notes that the AOFM announced the budget funding requirement for the next fiscal year 2016-17, with issuance of ACGBs ramped up to a record A$90b.
Key Quotes
“The Budget yesterday already upgraded expected ACGBs on issue by A$55bn over the forward estimates compared with December’s MYEFO, so this news is not a complete surprise.
The larger funding requirement has boosted the total weekly tender size from A$1.7b to A$2b. The AOFM is wasting little time funding the budget blowout, announcing a new 21 May 2028 bond via syndication for next week, and two new bond lines will be established over 2016-17, a 21 Dec 2021 and another 2028, this one for 21 Nov. The AOFM is also considering extending the curve (2040/41 perhaps?) but not before October.”
Key Quotes
“The Budget yesterday already upgraded expected ACGBs on issue by A$55bn over the forward estimates compared with December’s MYEFO, so this news is not a complete surprise.
The larger funding requirement has boosted the total weekly tender size from A$1.7b to A$2b. The AOFM is wasting little time funding the budget blowout, announcing a new 21 May 2028 bond via syndication for next week, and two new bond lines will be established over 2016-17, a 21 Dec 2021 and another 2028, this one for 21 Nov. The AOFM is also considering extending the curve (2040/41 perhaps?) but not before October.”