Summary: Semi-government bond spreads unchanged on average; WATC announces 2022/23 funding requirement; QTC taps March 2026 FRN.
Semi-government spreads finished the week unchanged on average as semi-government yields generally moved down in line with their Commonwealth counterparts. The majority of spreads in the sample varied within or quite close to a range from -4bps to +5bps and any real exceptions were restricted to semis which mature in the next twelve months.
WATC announced its 2022/23 funding requirement on Thursday. It expects to borrow $5.1 billion over the year, a $600 million reduction on their last funding update in December. $1.5 billion in “new money” debt is expected to be issued, $3.8 billion will be used to refinance maturing debt and $1.2 billion in debt repaid. “This update is unlikely to move Semi spreads materially,” according to NAB economists. Total public sector net debt is expected to be around $30 billion at the end of this financial year.
There was just the one issuer active in the primary market during the week. QTC tapped its March 2026 FRNs for $275 million.
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| QTC | 21-Jul-22 | 6.00 | 7,764 | 0.70 | 0.66 | 0.67 | -0.03 | 0.39 |
| SAFA | 22-Sep-22 | 1.50 | 2,062 | 1.19 | 1.16 | 1.18 | -0.01 | 0.77 |
| TCV | 17-Oct-22 | 6.00 | 3,730 | 1.24 | 1.21 | 1.23 | -0.06 | 0.66 |
| WATC | 20-Oct-22 | 2.75 | 3,001 | 1.21 | 1.16 | 1.16 | 0.01 | 0.83 |
| NTTC | 21-Nov-22 | 2.50 | 600 | 1.41 | 1.29 | 1.29 | -0.19 | 0.91 |
| NSWTC | 20-Apr-23 | 4.00 | 4,011 | 2.14 | 1.96 | 1.96 | -0.21 | 0.66 |
| NSWTC | 1-May-23 | 6.00 | 339 | 2.17 | 2.01 | 2.01 | -0.18 | 0.71 |
| QTC | 21-Jul-23 | 4.25 | 8,744 | 2.54 | 2.30 | 2.30 | -0.27 | 0.59 |
| WATC | 16-Oct-23 | 6.00 | 4,376 | 2.76 | 2.56 | 2.56 | -0.21 | 0.65 |
| SAFA | 20-Nov-23 | 4.25 | 1,520 | 2.84 | 2.63 | 2.63 | -0.22 | 0.63 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 2.80 | 2.60 | 2.60 | -0.23 | 0.59 |
| NSWTC | 8-Feb-24 | 5.25 | 4,692 | 2.82 | 2.59 | 2.59 | -0.25 | 0.40 |
| NTTC | 15-Mar-24 | 6.00 | 650 | 3.11 | 2.90 | 2.90 | -0.23 | 0.47 |
| TASCORP | 11-Jun-24 | 4.00 | 1,151 | 3.24 | 3.03 | 3.03 | -0.20 | 0.42 |
| QTC | 22-Jul-24 | 5.75 | 8,249 | 3.06 | 2.83 | 2.83 | -0.20 | 0.38 |
| WATC | 23-Jul-24 | 2.50 | 5,089 | 3.06 | 2.84 | 2.84 | -0.21 | 0.42 |
| SAFA | 15-Aug-24 | 2.25 | 3,128 | 3.11 | 2.91 | 2.91 | -0.18 | 0.44 |
| NSWTC | 20-Aug-24 | 5.00 | 4,324 | 3.00 | 2.77 | 2.77 | -0.22 | 0.30 |
| TCV | 17-Dec-24 | 5.50 | 6,508 | 3.15 | 2.93 | 2.93 | -0.19 | 0.35 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 3.22 | 3.00 | 3.00 | -0.20 | 0.33 |
| SAFA | 16-Apr-25 | 2.75 | 1,250 | 3.29 | 3.07 | 3.07 | -0.17 | 0.34 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 3.22 | 3.00 | 3.00 | -0.20 | 0.30 |
| QTC | 21-Jul-25 | 4.75 | 8,581 | 3.32 | 3.09 | 3.09 | -0.17 | 0.31 |
| WATC | 23-Jul-25 | 5.00 | 5,483 | 3.30 | 3.08 | 3.08 | -0.17 | 0.31 |
| TASCORP | 19-Feb-26 | 3.25 | 1,094 | 3.53 | 3.31 | 3.31 | -0.16 | 0.30 |
| NTTC | 15-Mar-26 | 6.00 | 650 | 3.42 | 3.20 | 3.20 | -0.19 | 0.28 |
| NSWTC | 20-May-26 | 4.00 | 5,323 | 3.41 | 3.18 | 3.18 | -0.17 | 0.28 |
| SAFA | 20-Jul-26 | 3.00 | 3,540 | 3.47 | 3.25 | 3.25 | -0.16 | 0.30 |
| QTC | 21-Jul-26 | 3.25 | 8,610 | 3.46 | 3.24 | 3.24 | -0.17 | 0.30 |
| TCV | 17-Nov-26 | 5.50 | 7,822 | 3.47 | 3.26 | 3.26 | -0.16 | 0.30 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 3.59 | 3.38 | 3.38 | -0.17 | 0.29 |
| NSWTC | 20-May-27 | 3.00 | 8,861 | 3.54 | 3.32 | 3.32 | -0.13 | 0.33 |
| QTC | 20-Aug-27 | 2.75 | 8,794 | 3.56 | 3.34 | 3.34 | -0.14 | 0.33 |
| SAFA | 20-Sep-27 | 3.00 | 1,500 | 3.59 | 3.38 | 3.38 | -0.12 | 0.35 |
| WATC | 21-Oct-27 | 3.00 | 3,566 | 3.57 | 3.36 | 3.36 | -0.13 | 0.35 |
| NSWTC | 20-Mar-28 | 3.00 | 9,328 | 3.63 | 3.43 | 3.43 | -0.10 | 0.39 |
| SAFA | 24-May-28 | 3.00 | 3,040 | 3.67 | 3.48 | 3.48 | -0.10 | 0.40 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 3.66 | 3.46 | 3.46 | -0.10 | 0.39 |
| TCV | 20-Oct-28 | 3.00 | 8,377 | 3.70 | 3.51 | 3.51 | -0.09 | 0.40 |
| NSWTC | 20-Apr-29 | 3.00 | 9,153 | 3.73 | 3.55 | 3.55 | -0.07 | 0.43 |
| NTTC | 21-May-29 | 2.00 | 600 | 3.85 | 3.66 | 3.66 | -0.12 | 0.40 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 3.82 | 3.63 | 3.63 | -0.12 | 0.42 |
| WATC | 24-Jul-29 | 2.75 | 3,316 | 3.75 | 3.56 | 3.56 | -0.12 | 0.44 |
| QTC | 21-Aug-29 | 3.25 | 7,535 | 3.75 | 3.57 | 3.57 | -0.11 | 0.45 |
| TCV | 22-Oct-29 | 2.50 | 8,577 | 3.79 | 3.61 | 3.61 | -0.10 | 0.46 |
| NSWTC | 20-Feb-30 | 3.00 | 10,341 | 3.80 | 3.63 | 3.63 | -0.06 | 0.45 |
| NTTC | 21-May-30 | 2.00 | 750 | 3.95 | 3.77 | 3.77 | -0.09 | 0.47 |
| SAFA | 24-May-30 | 2.75 | 2,815 | 3.85 | 3.69 | 3.69 | -0.09 | 0.49 |
| QTC | 21-Aug-30 | 3.50 | 8,387 | 3.82 | 3.64 | 3.64 | -0.05 | 0.46 |
| TCV | 20-Nov-30 | 5.25 | 6,799 | 3.88 | 3.71 | 3.71 | -0.09 | 0.49 |
| NSWTC | 20-Mar-31 | 2.00 | 8,762 | 3.90 | 3.73 | 3.73 | -0.07 | 0.52 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 4.09 | 3.92 | 3.92 | -0.08 | 0.48 |
| QTC | 21-Aug-31 | 1.75 | 7,257 | 3.92 | 3.76 | 3.76 | -0.07 | 0.53 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 4.00 | 3.83 | 3.83 | -0.07 | 0.50 |
| SAFA | 24-May-32 | 5.25 | 2,560 | 3.99 | 3.83 | 3.83 | -0.06 | 0.54 |
| TCV | 20-Dec-32 | 4.25 | 6,305 | 3.99 | 3.84 | 3.84 | -0.01 | 0.51 |
| NSWTC | 8-Mar-33 | 5.25 | 3,867 | 4.02 | 3.86 | 3.86 | -0.06 | 0.52 |
| QTC | 14-Mar-33 | 6.50 | 738 | 3.96 | 3.81 | 3.81 | -0.01 | 0.51 |
| QTC | 20-Jul-34 | 1.75 | 4,330 | 4.14 | 4.00 | 4.00 | -0.05 | 0.54 |
| WATC | 24-Oct-34 | 2.00 | 1,113 | 4.13 | 3.96 | 3.96 | -0.06 | 0.54 |
| QTC | 16-Apr-40 | 2.25 | 1,882 | 4.34 | 4.18 | 4.18 | -0.07 | 0.52 |
| NSWTC | 7-May-41 | 2.25 | 2,293 | 4.41 | 4.26 | 4.26 | -0.05 | 0.54 |
| QTC | 20-Nov-41 | 2.25 | 1,781 | 4.38 | 4.23 | 4.23 | -0.06 | 0.51 |