Summary: Semi-government bond spreads about 3bps wider on average; SAFA publishes 2022/23 funding requirement; TCV new FRN lines, QTC taps existing bonds.
Semi-government spreads finished the week about 3bps 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 -2bps to +6bps and any exceptions were not particularly far outside of this range.
South Australia’s 2022/23 State Budget was released on Thursday, forecasting a surplus of $233 million. SAFA now expects a $6.6 billion funding requirement for 2022/23, with maturing liabilities accounting for $4.2 billion and new loans accounting for $2.6 billion. $0.2 billion has already been pre-funded.
TCV issued $2.4 billion worth of FRNs over two tranches on Thursday. The $1.15 billion March 2028 tranche was priced at BBSW + 8bps and the $1.25 billion March 2030 tranche was priced at BBSW + 12bps. QTC also favoured FRNs. It tapped its April 2027 FRNs for $730 million during the week, as well as raising an additional $200 million via a tap of its August 2030 fixed-rate line.
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| QTC | 21-Jul-22 | 6.00 | 7,764 | 0.85 | 0.72 | 0.79 | 0.07 | 0.21 |
| SAFA | 22-Sep-22 | 1.50 | 2,062 | 1.27 | 1.16 | 1.21 | 0.10 | 0.34 |
| TCV | 17-Oct-22 | 6.00 | 3,730 | 1.44 | 1.35 | 1.38 | 0.07 | 0.34 |
| WATC | 20-Oct-22 | 2.75 | 3,001 | 1.35 | 1.24 | 1.27 | 0.05 | 0.39 |
| NTTC | 21-Nov-22 | 2.50 | 600 | 1.48 | 1.31 | 1.45 | 0.13 | 0.30 |
| NSWTC | 20-Apr-23 | 4.00 | 4,011 | 2.16 | 1.94 | 2.13 | 0.23 | 0.34 |
| NSWTC | 1-May-23 | 6.00 | 339 | 2.22 | 2.01 | 2.21 | 0.22 | 0.39 |
| QTC | 21-Jul-23 | 4.25 | 8,744 | 2.52 | 2.29 | 2.50 | 0.23 | 0.34 |
| WATC | 16-Oct-23 | 6.00 | 4,376 | 2.76 | 2.51 | 2.74 | 0.27 | 0.36 |
| SAFA | 20-Nov-23 | 4.25 | 1,520 | 2.86 | 2.60 | 2.84 | 0.27 | 0.37 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 2.81 | 2.57 | 2.79 | 0.23 | 0.39 |
| NSWTC | 8-Feb-24 | 5.25 | 4,692 | 2.85 | 2.55 | 2.82 | 0.28 | 0.36 |
| NTTC | 15-Mar-24 | 6.00 | 650 | 3.16 | 2.88 | 3.13 | 0.27 | 0.39 |
| TASCORP | 11-Jun-24 | 4.00 | 1,151 | 3.27 | 2.97 | 3.24 | 0.30 | 0.34 |
| QTC | 22-Jul-24 | 5.75 | 8,249 | 3.03 | 2.75 | 3.00 | 0.28 | 0.27 |
| WATC | 23-Jul-24 | 2.50 | 5,089 | 3.05 | 2.77 | 3.02 | 0.27 | 0.26 |
| SAFA | 15-Aug-24 | 2.25 | 3,128 | 3.11 | 2.82 | 3.08 | 0.29 | 0.30 |
| NSWTC | 20-Aug-24 | 5.00 | 4,324 | 3.01 | 2.71 | 2.98 | 0.29 | 0.30 |
| TCV | 17-Dec-24 | 5.50 | 6,508 | 3.15 | 2.89 | 3.13 | 0.26 | 0.30 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 3.18 | 2.96 | 3.16 | 0.22 | 0.27 |
| SAFA | 16-Apr-25 | 2.75 | 1,250 | 3.26 | 3.03 | 3.25 | 0.25 | 0.28 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 3.25 | 2.95 | 3.21 | 0.27 | 0.32 |
| QTC | 21-Jul-25 | 4.75 | 8,581 | 3.27 | 3.04 | 3.26 | 0.25 | 0.26 |
| WATC | 23-Jul-25 | 5.00 | 5,483 | 3.27 | 3.03 | 3.25 | 0.25 | 0.27 |
| TASCORP | 19-Feb-26 | 3.25 | 1,094 | 3.49 | 3.25 | 3.47 | 0.25 | 0.26 |
| NTTC | 15-Mar-26 | 6.00 | 650 | 3.39 | 3.15 | 3.36 | 0.22 | 0.28 |
| NSWTC | 20-May-26 | 4.00 | 5,323 | 3.39 | 3.15 | 3.38 | 0.26 | 0.28 |
| SAFA | 20-Jul-26 | 3.00 | 3,540 | 3.45 | 3.20 | 3.43 | 0.26 | 0.29 |
| QTC | 21-Jul-26 | 3.25 | 8,610 | 3.44 | 3.18 | 3.42 | 0.27 | 0.29 |
| TCV | 17-Nov-26 | 5.50 | 7,772 | 3.47 | 3.22 | 3.45 | 0.27 | 0.31 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 3.55 | 3.31 | 3.52 | 0.21 | 0.29 |
| NSWTC | 20-May-27 | 3.00 | 8,861 | 3.51 | 3.26 | 3.49 | 0.26 | 0.30 |
| QTC | 20-Aug-27 | 2.75 | 8,794 | 3.54 | 3.29 | 3.52 | 0.26 | 0.31 |
| SAFA | 20-Sep-27 | 3.00 | 1,500 | 3.56 | 3.32 | 3.55 | 0.26 | 0.31 |
| WATC | 21-Oct-27 | 3.00 | 3,636 | 3.56 | 3.30 | 3.54 | 0.27 | 0.32 |
| NSWTC | 20-Mar-28 | 3.00 | 9,433 | 3.60 | 3.35 | 3.58 | 0.26 | 0.31 |
| SAFA | 24-May-28 | 3.00 | 3,040 | 3.66 | 3.40 | 3.64 | 0.28 | 0.34 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 3.63 | 3.38 | 3.61 | 0.27 | 0.33 |
| TCV | 20-Oct-28 | 3.00 | 8,639 | 3.69 | 3.43 | 3.67 | 0.29 | 0.35 |
| NSWTC | 20-Apr-29 | 3.00 | 9,153 | 3.70 | 3.45 | 3.69 | 0.28 | 0.35 |
| NTTC | 21-May-29 | 2.00 | 600 | 3.80 | 3.55 | 3.78 | 0.23 | 0.33 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 3.77 | 3.52 | 3.75 | 0.23 | 0.33 |
| WATC | 24-Jul-29 | 2.75 | 3,396 | 3.72 | 3.47 | 3.71 | 0.26 | 0.36 |
| QTC | 21-Aug-29 | 3.25 | 7,535 | 3.72 | 3.47 | 3.71 | 0.25 | 0.35 |
| TCV | 22-Oct-29 | 2.50 | 9,059 | 3.79 | 3.52 | 3.78 | 0.28 | 0.39 |
| NSWTC | 20-Feb-30 | 3.00 | 10,366 | 3.77 | 3.52 | 3.77 | 0.29 | 0.38 |
| NTTC | 21-May-30 | 2.00 | 750 | 3.90 | 3.65 | 3.88 | 0.24 | 0.39 |
| SAFA | 24-May-30 | 2.75 | 2,815 | 3.84 | 3.58 | 3.84 | 0.28 | 0.40 |
| QTC | 21-Aug-30 | 3.50 | 8,387 | 3.79 | 3.54 | 3.79 | 0.29 | 0.38 |
| TCV | 20-Nov-30 | 5.25 | 6,898 | 3.88 | 3.62 | 3.88 | 0.28 | 0.41 |
| NSWTC | 20-Mar-31 | 2.00 | 8,862 | 3.86 | 3.61 | 3.86 | 0.27 | 0.39 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 4.03 | 3.78 | 4.01 | 0.23 | 0.36 |
| QTC | 21-Aug-31 | 1.75 | 7,257 | 3.88 | 3.64 | 3.88 | 0.26 | 0.38 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 3.95 | 3.70 | 3.93 | 0.22 | 0.37 |
| SAFA | 24-May-32 | 5.25 | 2,560 | 3.96 | 3.71 | 3.96 | 0.27 | 0.41 |
| TCV | 20-Dec-32 | 4.25 | 6,205 | 3.98 | 3.71 | 3.97 | 0.30 | 0.41 |
| NSWTC | 8-Mar-33 | 5.25 | 4,392 | 4.01 | 3.74 | 4.00 | 0.27 | 0.42 |
| QTC | 14-Mar-33 | 6.50 | 738 | 3.95 | 3.69 | 3.94 | 0.29 | 0.41 |
| QTC | 20-Jul-34 | 1.75 | 4,330 | 4.12 | 3.86 | 4.12 | 0.28 | 0.41 |
| WATC | 24-Oct-34 | 2.00 | 1,113 | 4.07 | 3.82 | 4.07 | 0.27 | 0.41 |
| QTC | 16-Apr-40 | 2.25 | 1,882 | 4.22 | 4.01 | 4.22 | 0.20 | 0.36 |
| NSWTC | 7-May-41 | 2.25 | 2,293 | 4.31 | 4.10 | 4.31 | 0.20 | 0.37 |
| QTC | 20-Nov-41 | 2.25 | 1,781 | 4.28 | 4.07 | 4.28 | 0.20 | 0.36 |