09 May – 13 May 2016

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It’s the time of the year where governments, both State and Commonwealth, release the budget forecasts and in this latest week it was Western Australia’s turn. Gone are the days of the mining boom and any associated royalties flowing into W.A’s coffers; this budget has a larger-than-expected deficit of $3.9 billion in 2016/2017.

In other semi-government bond news, the ACT Government has mandated investment banks to arrange a syndicated issue for a new 10 year benchmark issue, so a new line of ACT bonds should appear next week. SAFA has said it is done for the 2015/2016 financial year and completed issuance for its $1.5 billion programme. The South Australian budget will be released in late June and markets should be provided with an update for the 2016/2017 funding requirement shortly thereafter.

There was a $45 million tap to Tascorp’s May 2046 late in the week except this time the margin over the June 2039 ACGBs was 120bps instead of the 110bps margin on the previous issue.

Yields in the semis market continued to follow Commonwealth counterparts down again this week. Generally, spreads to ACGBs edged lower. In a continuation of the theme from the previous week, spreads tended to be slightly higher at the long end and slightly lower at the short end.

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AUST SEMI GOVT BOND

ISSUERMATURITYCOUPON
(%)
ISSUE
SIZE
WEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
WATC8-Jun-163.0032431.811.791.80-0.03-0.35
TCV15-Nov-165.7533601.831.821.820.00-0.32
NTTC20-Nov-165.755001.971.941.960.01-0.30
NSWTC20-Feb-174.0045171.761.731.760.03-0.27
NSWTC1-Mar-175.507471.701.681.700.02-0.27
WATC15-Jul-178.0051021.811.791.810.01-0.33
QTC14-Sep-176.0012471.661.641.650.00-0.32
SAFA20-Sep-175.7524031.781.761.780.00-0.32
TASCORP20-Sep-175.009801.831.791.830.03-0.28
QTC21-Sep-173.5061091.771.751.760.00-0.33
NTTC17-Nov-174.755001.841.811.840.01-0.30
TCV17-Nov-173.5028171.751.731.750.01-0.30
NSWTC1-Feb-186.0056501.691.671.690.01-0.26
QTC21-Feb-186.0064771.761.731.750.00-0.32
ACTTREAS7-Jun-185.505501.801.761.800.03-0.26
NTTC20-Sep-184.755001.881.861.880.01-0.27
WATC23-Oct-183.7537471.861.841.850.00-0.29
TCV15-Nov-185.5043461.751.721.730.00-0.27
NSWTC20-Mar-193.5044021.731.711.710.00-0.26
NSWTC1-Apr-196.00n/a1.651.631.640.01-0.26
QTC14-Jun-196.25n/a1.731.711.71-0.01-0.28
QTC21-Jun-194.0055231.861.841.84-0.01-0.29
SAFA6-Aug-194.7520001.861.831.840.00-0.28
WATC15-Oct-197.0037541.921.901.910.01-0.28
QTC21-Feb-206.2596861.951.941.940.00-0.25
NSWTC1-May-206.0061311.811.791.79-0.01-0.24
ACTTREAS22-May-204.255701.951.941.940.00-0.25
NSWTC1-Jun-206.001941.711.701.700.00-0.24
TASCORP15-Jun-206.006021.991.971.980.00-0.24
TCV15-Jun-206.0061851.841.811.81-0.02-0.27
NSWTC8-Apr-214.0025671.961.941.94-0.01-0.21
SAFA20-May-215.0020442.102.072.07-0.02-0.26
QTC14-Jun-216.0016011.981.961.96-0.02-0.23
QTC21-Jun-215.5064162.142.112.11-0.02-0.23
WATC15-Jul-217.0035732.192.162.17-0.01-0.24
NTTC20-Sep-214.256502.222.202.200.000.10
NSWTC1-Mar-226.0062052.072.052.05-0.01-0.19
TASCORP8-Mar-224.255652.272.262.26-0.01-0.21
ACT TREAS11-Apr-224.255502.242.222.230.00-0.16
QTC21-Jul-226.0075582.282.252.25-0.02-0.22
TCV17-Oct-226.0059952.132.112.11-0.02-0.21
NSWTC20-Apr-234.0036782.242.222.22-0.01-0.17
NSWTC1-May-236.0011802.122.102.10-0.01-0.17
QTC21-Jul-234.2555682.482.442.44-0.02-0.19
WATC16-Oct-236.0024272.552.512.51-0.03-0.21
SAFA20-Nov-234.257702.482.452.45-0.02-0.18
NTTC15-Mar-246.006502.592.562.56-0.01-0.15
TASCORP11-Jun-244.005502.582.542.54-0.01-0.16
QTC22-Jul-245.7565852.582.542.54-0.02-0.17
NSWTC20-Aug-245.0061192.352.312.31-0.01-0.16
TCV17-Dec-245.5048712.382.332.33-0.02-0.18
SAFA16-Apr-252.7512502.722.672.67-0.02-0.12
QTC21-Jul-254.7520602.712.672.67-0.02-0.13
WATC23-Jul-255.0010412.792.762.76-0.01-0.14
TASCORP19-Feb-263.253002.792.772.770.01-0.12
NTTC15-Mar-266.006502.762.712.71-0.02-0.13
QTC21-Jul-263.2528502.822.782.78-0.01-0.13
TCV17-Nov-265.5033672.532.482.48-0.03-0.18
NSWTC1-May-306.003622.802.772.770.00-0.12
TCV20-Dec-324.253393.012.982.980.01-0.12
QTC14-Mar-336.507253.213.173.17-0.01-0.15

Issues underlined are guaranteed by the Commonwealth Government

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