AOFM sells 2025 bond at record low yield, record high coverage

By Sophia Rodrigues

Published On 29 May 2020 , 11:05 AM

The AOFM has sold A$1.0 billion of 3.25% April 2025 government bond at a weighted average issue yield of 0.3859%, lower than the previous record low of 0.3888% at May 4 tender. The coverage ratio was 5.6920, slightly higher than record 5.4333 at the last tender on May 4. The lowest yield today was 0.3825% and the highest 0.3875%. 

There were 35 bids in total, and only 6 were successful, and among them 3 got 100% allotment.

With this issue, this bond line has now increased to A$30.4 billion. The bond was first issued via syndication in May 2013 for A$4.0 billion at weighted average yield of 3.47%, and was last issued on May 4 at a weighted average yield of 0.3888.

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