Summary: Semi-government bond spreads 2bps wider on average; QTC, SAFA publish funding requirements.
Semi-government spreads finished the week 2bps wider on average as semi-government yields outpaced the rises of their Commonwealth counterparts. The majority of spreads in the sample varied within or quite close to a range from -1bp to +3bps and the exceptions were at most 2bps outside of this band.
Queensland tabled its 2023/24 Budget at the start of the week and it forecast a deficit of $2.2 billion for next financial year. QTC estimates it will borrow $15.5 billion over the financial year.
It was SAFA’s turn on Friday when it announced a borrowing requirement of $5.4 billion for the 2023/24 financial year.
AUSTRALIAN SEMI GOVT BONDS
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| QTC | 21-Jul-23 | 6.00 | 7,725 | 4.04 | 0.04 | 0.25 | 4.05 | 4.01 |
| WATC | 16-Oct-23 | 4.25 | 3,625 | 4.32 | 0.12 | 0.51 | 4.32 | 4.20 |
| SAFA | 20-Nov-23 | 6.00 | 1,520 | 4.40 | 0.14 | 0.62 | 4.40 | 4.27 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 4.40 | 0.14 | 0.61 | 4.40 | 4.27 |
| NSWTC | 8-Feb-24 | 5.25 | 4,542 | 4.52 | 0.17 | 0.75 | 4.52 | 4.35 |
| NTTC | 15-Mar-24 | 4.25 | 650 | 4.46 | 0.16 | 0.80 | 4.46 | 4.30 |
| QTC | 22-Jul-24 | 4.00 | 7,824 | 4.48 | 0.18 | 0.88 | 4.48 | 4.31 |
| WATC | 23-Jul-24 | 5.75 | 4,227 | 4.50 | 0.18 | 0.90 | 4.50 | 4.32 |
| SAFA | 15-Aug-24 | 2.50 | 2,628 | 4.48 | 0.18 | 0.90 | 4.48 | 4.30 |
| NSWTC | 20-Aug-24 | 2.25 | 4,324 | 4.49 | 0.17 | 0.92 | 4.49 | 4.32 |
| TCV | 17-Dec-24 | 5.00 | 6,176 | 4.46 | 0.18 | 0.95 | 4.46 | 4.28 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 4.46 | 0.19 | 0.97 | 4.46 | 4.28 |
| SAFA | 16-Apr-25 | 5.50 | 1,250 | 4.39 | 0.18 | 0.92 | 4.39 | 4.21 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 4.51 | 0.20 | 0.94 | 4.51 | 4.33 |
| QTC | 21-Jul-25 | 2.75 | 8,581 | 4.40 | 0.20 | 0.92 | 4.40 | 4.21 |
| WATC | 23-Jul-25 | 4.75 | 5,578 | 4.42 | 0.22 | 0.95 | 4.42 | 4.22 |
| TASCORP | 19-Feb-26 | 5.00 | 1,200 | 4.36 | 0.19 | 0.98 | 4.36 | 4.17 |
| NTTC | 15-Mar-26 | 3.25 | 650 | 4.39 | 0.20 | 0.96 | 4.39 | 4.20 |
| NSWTC | 20-May-26 | 6.00 | 5,473 | 4.32 | 0.19 | 0.95 | 4.32 | 4.13 |
| SAFA | 20-Jul-26 | 4.00 | 3,540 | 4.30 | 0.20 | 0.92 | 4.30 | 4.11 |
| QTC | 21-Jul-26 | 3.00 | 8,610 | 4.28 | 0.20 | 0.92 | 4.28 | 4.08 |
| WATC | 21-Oct-26 | 3.00 | 5,022 | 4.25 | 0.19 | 0.92 | 4.25 | 4.07 |
| TCV | 17-Nov-26 | 3.25 | 10,690 | 4.36 | 0.19 | 0.97 | 4.36 | 4.18 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 4.34 | 0.18 | 0.87 | 4.34 | 4.17 |
| NSWTC | 20-May-27 | 2.75 | 9,311 | 4.29 | 0.19 | 0.91 | 4.29 | 4.12 |
| QTC | 20-Aug-27 | 3.00 | 8,794 | 4.26 | 0.18 | 0.88 | 4.27 | 4.10 |
| SAFA | 20-Sep-27 | 2.75 | 1,500 | 4.28 | 0.18 | 0.86 | 4.28 | 4.12 |
| WATC | 21-Oct-27 | 3.00 | 4,164 | 4.23 | 0.17 | 0.88 | 4.23 | 4.07 |
| NSWTC | 20-Mar-28 | 3.00 | 9,793 | 4.32 | 0.18 | 0.88 | 4.32 | 4.15 |
| SAFA | 24-May-28 | 3.00 | 4,040 | 4.33 | 0.18 | 0.85 | 4.33 | 4.16 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 4.29 | 0.17 | 0.86 | 4.29 | 4.12 |
| TCV | 20-Oct-28 | 3.00 | 10,868 | 4.38 | 0.17 | 0.88 | 4.38 | 4.22 |
| NSWTC | 20-Apr-29 | 3.00 | 10,233 | 4.37 | 0.15 | 0.82 | 4.37 | 4.23 |
| NTTC | 21-May-29 | 2.00 | 600 | 4.44 | 0.14 | 0.80 | 4.44 | 4.30 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 4.41 | 0.14 | 0.82 | 4.41 | 4.27 |
| WATC | 24-Jul-29 | 2.75 | 3,591 | 4.33 | 0.14 | 0.80 | 4.33 | 4.19 |
| QTC | 21-Aug-29 | 3.25 | 7,635 | 4.35 | 0.15 | 0.80 | 4.35 | 4.21 |
| TCV | 22-Oct-29 | 2.50 | 10,132 | 4.44 | 0.14 | 0.83 | 4.44 | 4.31 |
| NSWTC | 20-Feb-30 | 3.00 | 10,841 | 4.43 | 0.12 | 0.78 | 4.43 | 4.31 |
| NTTC | 21-May-30 | 2.00 | 750 | 4.55 | 0.11 | 0.75 | 4.55 | 4.44 |
| SAFA | 24-May-30 | 2.75 | 3,865 | 4.43 | 0.13 | 0.78 | 4.43 | 4.31 |
| QTC | 21-Aug-30 | 3.50 | 8,962 | 4.40 | 0.13 | 0.76 | 4.40 | 4.28 |
| TCV | 20-Nov-30 | 5.25 | 8,501 | 4.53 | 0.12 | 0.80 | 4.53 | 4.42 |
| NSWTC | 20-Mar-31 | 2.00 | 10,353 | 4.54 | 0.11 | 0.74 | 4.54 | 4.44 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 4.63 | 0.09 | 0.72 | 4.63 | 4.53 |
| QTC | 21-Aug-31 | 1.75 | 7,357 | 4.49 | 0.11 | 0.72 | 4.49 | 4.38 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 4.57 | 0.08 | 0.70 | 4.57 | 4.49 |
| NSWTC | 20-Feb-32 | 2.00 | 11,611 | 4.65 | 0.10 | 0.72 | 4.65 | 4.55 |
| SAFA | 24-May-32 | 5.25 | 3,310 | 4.64 | 0.11 | 0.70 | 4.64 | 4.53 |
| TCV | 20-Dec-32 | 4.25 | 11,099 | 4.72 | 0.10 | 0.75 | 4.72 | 4.61 |
| NSWTC | 8-Mar-33 | 5.25 | 12,845 | 4.77 | 0.10 | 0.71 | 4.77 | 4.66 |
| QTC | 14-Mar-33 | 6.50 | 662 | 4.62 | 0.10 | 0.69 | 4.62 | 4.51 |
| NSWTC | 20-Mar-34 | 1.75 | 7,174 | 4.87 | 0.16 | 0.69 | 4.87 | 4.78 |
| QTC | 20-Jul-34 | 1.75 | 5,358 | 4.79 | 0.10 | 0.66 | 4.79 | 4.69 |
| WATC | 24-Oct-34 | 2.00 | 1,633 | 4.70 | 0.09 | 0.63 | 4.70 | 4.59 |
| QTC | 16-Apr-40 | 2.25 | 1,482 | 5.21 | 0.08 | 0.52 | 5.21 | 5.13 |
| NSWTC | 7-May-41 | 2.25 | 2,323 | 5.29 | 0.05 | 0.48 | 5.29 | 5.22 |
| QTC | 20-Nov-41 | 2.25 | 2,181 | 5.27 | 0.05 | 0.52 | 5.27 | 5.21 |