AOFM sells 3.25% April 2025 bond at record low yield

By Sophia Rodrigues

The AOFM has sold A$2.0 billion of 3.25% April 2025 government bond at a weighted average issue yield of 0.3707%, lower than the previous record low of 0.3859% at the May 29 tender. The coverage ratio was 5.09 times, lower than record 5.69 at last tender. The lowest yield today was 0.3675% and the highest 0.3725%. 

There were 51 bids in total, and only 11 were successful, and among them 5 got 100% allotment.

With this issue, this bond line has now increased to A$32.4 billion, making it the second largest issue currently along with the April 2026 bond. The bond was first issued via syndication in May 2013 for A$4.0 billion at weighted average yield of 3.47%.