Summary: Semi-government bond spreads 2bps tighter on average; Victorian 2023/24 budget released.
Semi-government spreads finished the week 2bps tighter on average as semi-government yields were outpaced by the rises of their Commonwealth counterparts. The majority of spreads in the sample varied within or quite close to a range from -3bps to +1bp and the only notable exception apart from some short-dated lines came from QTC’s March 2033 line (spread: 68bps, +6bps).
Victoria’s 2023/24 Budget was released on Tuesday. A $4 billion deficit is forecast and $34 billion worth of bonds will be issued this year.
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| QTC | 21-Jul-23 | 6.00 | 7,725 | 3.80 | -0.01 | 0.13 | 3.80 | 3.79 |
| WATC | 16-Oct-23 | 4.25 | 3,625 | 3.91 | 0.00 | 0.17 | 3.91 | 3.87 |
| SAFA | 20-Nov-23 | 6.00 | 1,520 | 3.92 | 0.00 | 0.19 | 3.92 | 3.89 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 3.92 | 0.01 | 0.19 | 3.92 | 3.88 |
| NSWTC | 8-Feb-24 | 5.25 | 4,542 | 3.92 | 0.01 | 0.15 | 3.93 | 3.89 |
| NTTC | 15-Mar-24 | 4.25 | 650 | 3.88 | 0.02 | 0.23 | 3.88 | 3.83 |
| QTC | 22-Jul-24 | 4.00 | 8,124 | 3.90 | 0.02 | 0.25 | 3.90 | 3.84 |
| WATC | 23-Jul-24 | 5.75 | 4,727 | 3.89 | 0.05 | 0.23 | 3.89 | 3.81 |
| SAFA | 15-Aug-24 | 2.50 | 2,628 | 3.90 | 0.06 | 0.28 | 3.90 | 3.80 |
| NSWTC | 20-Aug-24 | 2.25 | 4,324 | 3.90 | 0.04 | 0.24 | 3.90 | 3.82 |
| TCV | 17-Dec-24 | 5.00 | 6,151 | 3.87 | 0.05 | 0.25 | 3.87 | 3.78 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 3.88 | 0.10 | 0.29 | 3.88 | 3.77 |
| SAFA | 16-Apr-25 | 5.50 | 1,250 | 3.84 | 0.09 | 0.24 | 3.84 | 3.73 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 3.94 | 0.04 | 0.33 | 3.95 | 3.85 |
| QTC | 21-Jul-25 | 2.75 | 8,581 | 3.84 | 0.08 | 0.22 | 3.84 | 3.73 |
| WATC | 23-Jul-25 | 4.75 | 5,578 | 3.85 | 0.09 | 0.23 | 3.85 | 3.74 |
| TASCORP | 19-Feb-26 | 5.00 | 1,165 | 3.78 | 0.13 | 0.20 | 3.78 | 3.65 |
| NTTC | 15-Mar-26 | 3.25 | 650 | 3.86 | 0.13 | 0.22 | 3.86 | 3.72 |
| NSWTC | 20-May-26 | 6.00 | 5,473 | 3.78 | 0.11 | 0.21 | 3.78 | 3.66 |
| SAFA | 20-Jul-26 | 4.00 | 3,540 | 3.77 | 0.12 | 0.18 | 3.77 | 3.64 |
| QTC | 21-Jul-26 | 3.00 | 8,610 | 3.77 | 0.12 | 0.19 | 3.77 | 3.65 |
| WATC | 21-Oct-26 | 3.00 | 5,022 | 3.73 | 0.11 | 0.19 | 3.73 | 3.60 |
| TCV | 17-Nov-26 | 3.25 | 10,690 | 3.83 | 0.12 | 0.22 | 3.83 | 3.69 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 3.88 | 0.13 | 0.23 | 3.88 | 3.75 |
| NSWTC | 20-May-27 | 2.75 | 8,961 | 3.79 | 0.12 | 0.19 | 3.79 | 3.67 |
| QTC | 20-Aug-27 | 3.00 | 8,794 | 3.77 | 0.10 | 0.19 | 3.77 | 3.66 |
| SAFA | 20-Sep-27 | 2.75 | 1,500 | 3.80 | 0.10 | 0.15 | 3.80 | 3.68 |
| WATC | 21-Oct-27 | 3.00 | 4,164 | 3.75 | 0.10 | 0.17 | 3.75 | 3.64 |
| NSWTC | 20-Mar-28 | 3.00 | 9,643 | 3.84 | 0.12 | 0.17 | 3.84 | 3.71 |
| SAFA | 24-May-28 | 3.00 | 4,040 | 3.88 | 0.12 | 0.17 | 3.88 | 3.75 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 3.82 | 0.12 | 0.17 | 3.82 | 3.70 |
| TCV | 20-Oct-28 | 3.00 | 10,596 | 3.93 | 0.13 | 0.21 | 3.93 | 3.79 |
| NSWTC | 20-Apr-29 | 3.00 | 10,233 | 3.96 | 0.13 | 0.19 | 3.96 | 3.82 |
| NTTC | 21-May-29 | 2.00 | 600 | 4.06 | 0.14 | 0.18 | 4.06 | 3.91 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 4.01 | 0.14 | 0.19 | 4.01 | 3.86 |
| WATC | 24-Jul-29 | 2.75 | 3,591 | 3.94 | 0.14 | 0.18 | 3.94 | 3.80 |
| QTC | 21-Aug-29 | 3.25 | 7,635 | 3.96 | 0.13 | 0.19 | 3.96 | 3.82 |
| TCV | 22-Oct-29 | 2.50 | 10,132 | 4.05 | 0.14 | 0.22 | 4.05 | 3.90 |
| NSWTC | 20-Feb-30 | 3.00 | 10,766 | 4.06 | 0.14 | 0.18 | 4.06 | 3.92 |
| NTTC | 21-May-30 | 2.00 | 750 | 4.22 | 0.14 | 0.19 | 4.22 | 4.08 |
| SAFA | 24-May-30 | 2.75 | 3,865 | 4.07 | 0.14 | 0.18 | 4.07 | 3.93 |
| QTC | 21-Aug-30 | 3.50 | 8,712 | 4.04 | 0.13 | 0.17 | 4.04 | 3.91 |
| TCV | 20-Nov-30 | 5.25 | 8,501 | 4.17 | 0.15 | 0.21 | 4.17 | 4.02 |
| NSWTC | 20-Mar-31 | 2.00 | 10,353 | 4.20 | 0.12 | 0.18 | 4.20 | 4.08 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 4.33 | 0.14 | 0.18 | 4.33 | 4.18 |
| QTC | 21-Aug-31 | 1.75 | 1,500 | 4.15 | 0.10 | 0.15 | 4.15 | 4.04 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 4.28 | 0.14 | 0.19 | 4.28 | 4.14 |
| NSWTC | 20-Feb-32 | 2.00 | 11,561 | 4.34 | 0.13 | 0.20 | 4.34 | 4.21 |
| SAFA | 24-May-32 | 5.25 | 3,310 | 4.34 | 0.14 | 0.17 | 4.34 | 4.20 |
| TCV | 20-Dec-32 | 4.25 | 10,544 | 4.42 | 0.16 | 0.25 | 4.42 | 4.25 |
| NSWTC | 8-Mar-33 | 5.25 | 12,595 | 4.46 | 0.13 | 0.21 | 4.46 | 4.33 |
| QTC | 14-Mar-33 | 6.50 | 3,755 | 4.41 | 0.20 | 0.28 | 4.41 | 4.20 |
| NSWTC | 20-Mar-34 | 1.75 | 6,574 | 4.58 | 0.13 | 0.22 | 4.58 | 4.45 |
| QTC | 20-Jul-34 | 1.75 | 5,308 | 4.52 | 0.13 | 0.19 | 4.52 | 4.39 |
| WATC | 24-Oct-34 | 2.00 | 1,223 | 4.46 | 0.14 | 0.19 | 4.46 | 4.32 |
| QTC | 16-Apr-40 | 2.25 | 1,482 | 5.02 | 0.09 | 0.22 | 5.02 | 4.92 |
| NSWTC | 7-May-41 | 2.25 | 2,323 | 5.11 | 0.09 | 0.17 | 5.12 | 5.01 |
| QTC | 20-Nov-41 | 2.25 | 2,181 | 5.08 | 0.09 | 0.22 | 5.09 | 4.98 |