Australia has locked in a record $11 billion government bond deal, reaffirming investor confidence in the long term prospects of the Australian economy.
Australia’s largest ever syndicated bond issue attracted an estimated $20.9 billion in orders, meaning the bond attracted bids of almost twice the record amount that was ultimately issued.
The Australian Office of Financial Management has confirmed a yield of 3.005 per cent.
This comes just a month after a previous record $9.3 billion December 2021 bond was issued.
There are currently 24 Treasury bond maturities on issue, ranging from six months out to the recently established, and very successful, 30-year bond maturing in March 2047.
The scale of the latest issue reaffirms confidence in Australia's strong economic policies and institutions.
It also provides further evidence of the market’s positive views on Australia’s AAA rated economy.
While high demand for Australian Government debt is positive, Parliament should not be lulled into any sense of complacency about the need to continue to pass savings measures and get the Budget back into balance.