AOFM sells April 2023 bond at 0.2496%

By Sophia Rodrigues

The AOFM has sold A$2.0 billion of 5.5% April 2023 government bond at a weighted average issue yield of 0.2496%, slightly higher than the record low of 0.2348% achieved at the previous tender but right at the RBA's target for 3-year bond at 0.25%. The coverage ratio was 4.6110 compared with record 7.26 times at a tender on April 24. The lowest yield today was 0.2475% and the highest 0.2500%. 

There were 34 bids in total, and only 11 were successful, and among them 2 got 100% allotment.

With this issue, this bond line has now increased to A$32.2 billion, making it the second-largest bond line and very closely behind A$32.4 billion of April 2026 bond. The bond was first issued in May 2011 for A$1.0 billion at weighted average yield of 5.482%, and was last tendered on May 8 at a weighted average yield of 0.2348%.