Summary: Semi-government bond spreads about 2bps tighter on average; SAFA taps May 2034s, QTC taps/repurchases bonds for a net $150 million; RBA purchases $800 million of various semis, will cease programme next week.
Semi-government spreads finished the week about 2bps tighter on average as semi-government yields generally declined a little more than their Commonwealth counterparts. The majority of spreads in the sample varied within or quite close to a range from -3bps to +2bps and there were no especially notable exceptions.
There were two issuers present in the primary market during the week.
On Thursday, SAFA tapped its May 2034s for $750 million at EFP + 64bps, the same spread as the initial issue in February 2021.
QTC tapped its August 2033 and July 2034 lines for $250 million and $50 million during the week. It also repurchased $150 million July 2034s.
The RBA purchased $800 million of various semis in the secondary market during the week. Purchases under the Bank’s bond purchase programme will end next week as per the RBA’s announcement on Tuesday.
AUSTRALIAN SEMI GOVT BOND
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| NSWTC | 1-Mar-22 | 6.00 | 4,257 | 0.08 | 0.03 | 0.07 | 0.00 | 0.00 |
| TASCORP | 8-Mar-22 | 4.25 | 1,299 | 0.12 | 0.10 | 0.12 | -0.06 | -0.02 |
| ACT TREASURY | 11-Apr-22 | 4.25 | 550 | 0.13 | 0.11 | 0.13 | -0.08 | -0.05 |
| QTC | 21-Jul-22 | 6.00 | 7,785 | 0.11 | 0.08 | 0.10 | -0.05 | 0.00 |
| SAFA | 22-Sep-22 | 1.50 | 2,062 | 0.16 | 0.12 | 0.16 | -0.04 | 0.00 |
| TCV | 17-Oct-22 | 6.00 | 3,770 | 0.20 | 0.17 | 0.19 | -0.06 | -0.01 |
| WATC | 20-Oct-22 | 2.75 | 3,423 | 0.17 | 0.14 | 0.16 | -0.06 | -0.02 |
| NTTC | 21-Nov-22 | 2.50 | 600 | 0.23 | 0.22 | 0.23 | -0.03 | 0.00 |
| NSWTC | 20-Apr-23 | 4.00 | 4,792 | 0.56 | 0.52 | 0.55 | -0.05 | 0.20 |
| NSWTC | 1-May-23 | 6.00 | #REF! | 0.50 | 0.45 | 0.50 | -0.03 | 0.23 |
| QTC | 21-Jul-23 | 4.25 | 8,744 | 0.78 | 0.73 | 0.78 | -0.04 | 0.21 |
| WATC | 16-Oct-23 | 6.00 | 4,600 | 0.90 | 0.86 | 0.90 | -0.03 | 0.22 |
| SAFA | 20-Nov-23 | 4.25 | 1,520 | 0.97 | 0.92 | 0.93 | -0.10 | 0.15 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 0.97 | 0.91 | 0.97 | -0.05 | 0.17 |
| NSWTC | 8-Feb-24 | 5.25 | 4,877 | 1.08 | 1.00 | 1.08 | -0.04 | 0.21 |
| NTTC | 15-Mar-24 | 6.00 | 650 | 1.27 | 1.19 | 1.27 | 0.00 | 0.22 |
| TASCORP | 11-Jun-24 | 4.00 | 1,151 | 1.38 | 1.31 | 1.38 | -0.02 | 0.25 |
| QTC | 22-Jul-24 | 5.75 | 8,399 | 1.25 | 1.19 | 1.25 | -0.03 | 0.24 |
| WATC | 23-Jul-24 | 2.50 | 5,079 | 1.27 | 1.21 | 1.27 | -0.02 | 0.22 |
| SAFA | 15-Aug-24 | 2.25 | 3,128 | 1.29 | 1.22 | 1.29 | -0.01 | 0.22 |
| NSWTC | 20-Aug-24 | 5.00 | 4,329 | 1.26 | 1.19 | 1.26 | -0.01 | 0.20 |
| TCV | 17-Dec-24 | 5.50 | 6,408 | 1.41 | 1.31 | 1.41 | 0.00 | 0.24 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 1.54 | 1.46 | 1.54 | -0.02 | 0.31 |
| SAFA | 16-Apr-25 | 2.75 | 1,250 | 1.57 | 1.50 | 1.57 | -0.02 | 0.31 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 1.56 | 1.48 | 1.56 | -0.02 | 0.31 |
| QTC | 21-Jul-25 | 4.75 | 8,581 | 1.64 | 1.56 | 1.64 | -0.03 | 0.30 |
| WATC | 23-Jul-25 | 5.00 | 5,468 | 1.62 | 1.54 | 1.62 | -0.02 | 0.31 |
| TASCORP | 19-Feb-26 | 3.25 | 1,070 | 1.87 | 1.79 | 1.87 | -0.02 | 0.30 |
| NTTC | 15-Mar-26 | 6.00 | 650 | 1.77 | 1.68 | 1.77 | -0.01 | 0.30 |
| NSWTC | 20-May-26 | 4.00 | 5,323 | 1.78 | 1.70 | 1.78 | -0.02 | 0.29 |
| SAFA | 20-Jul-26 | 3.00 | 3,540 | 1.82 | 1.74 | 1.82 | -0.02 | 0.30 |
| QTC | 21-Jul-26 | 3.25 | 8,610 | 1.82 | 1.75 | 1.82 | -0.03 | 0.29 |
| TCV | 17-Nov-26 | 5.50 | 7,030 | 1.84 | 1.77 | 1.84 | -0.02 | 0.30 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 1.99 | 1.92 | 1.99 | -0.01 | 0.29 |
| NSWTC | 20-May-27 | 3.00 | 8,861 | 1.92 | 1.84 | 1.92 | -0.02 | 0.28 |
| QTC | 20-Aug-27 | 2.75 | 8,544 | 1.94 | 1.88 | 1.94 | -0.03 | 0.27 |
| SAFA | 20-Sep-27 | 3.00 | 1,500 | 1.96 | 1.89 | 1.96 | -0.02 | 0.29 |
| WATC | 21-Oct-27 | 3.00 | 3,461 | 1.93 | 1.86 | 1.93 | -0.02 | 0.27 |
| NSWTC | 20-Mar-28 | 3.00 | 9,108 | 2.02 | 1.97 | 2.02 | -0.01 | 0.31 |
| SAFA | 24-May-28 | 3.00 | 3,040 | 2.05 | 2.01 | 2.05 | -0.02 | 0.32 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 2.04 | 2.00 | 2.04 | -0.01 | 0.31 |
| TCV | 20-Oct-28 | 3.00 | 7,927 | 2.08 | 2.04 | 2.08 | -0.01 | 0.30 |
| NSWTC | 20-Apr-29 | 3.00 | 9,153 | 2.12 | 2.07 | 2.12 | 0.00 | 0.32 |
| NTTC | 21-May-29 | 2.00 | 600 | 2.24 | 2.17 | 2.24 | 0.02 | 0.32 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 2.20 | 2.13 | 2.20 | 0.02 | 0.32 |
| WATC | 24-Jul-29 | 2.75 | 3,221 | 2.14 | 2.08 | 2.14 | 0.00 | 0.32 |
| QTC | 21-Aug-29 | 3.25 | 7,535 | 2.15 | 2.10 | 2.15 | -0.01 | 0.30 |
| TCV | 22-Oct-29 | 2.50 | 8,420 | 2.18 | 2.13 | 2.18 | 0.00 | 0.32 |
| NSWTC | 20-Feb-30 | 3.00 | 9,851 | 2.19 | 2.15 | 2.19 | -0.01 | 0.34 |
| NTTC | 21-May-30 | 2.00 | 750 | 2.30 | 2.23 | 2.30 | 0.01 | 0.32 |
| SAFA | 24-May-30 | 2.75 | 2,515 | 2.23 | 2.18 | 2.23 | -0.02 | 0.32 |
| QTC | 21-Aug-30 | 3.50 | 8,228 | 2.21 | 2.17 | 2.21 | -0.01 | 0.32 |
| TCV | 20-Nov-30 | 5.25 | 6,571 | 2.27 | 2.24 | 2.27 | -0.01 | 0.33 |
| NSWTC | 20-Mar-31 | 2.00 | 8,478 | 2.28 | 2.23 | 2.28 | 0.00 | 0.35 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 2.48 | 2.41 | 2.48 | 0.02 | 0.32 |
| QTC | 21-Aug-31 | 1.75 | 7,167 | 2.31 | 2.27 | 2.31 | -0.02 | 0.33 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 2.36 | 2.29 | 2.36 | 0.02 | 0.31 |
| SAFA | 24-May-32 | 5.25 | 2,560 | 2.40 | 2.36 | 2.40 | -0.01 | 0.37 |
| TCV | 20-Dec-32 | 4.25 | 5,602 | 2.39 | 2.35 | 2.39 | -0.01 | 0.37 |
| NSWTC | 8-Mar-33 | 5.25 | 3,640 | 2.44 | 2.38 | 2.44 | 0.01 | 0.37 |
| QTC | 14-Mar-33 | 6.50 | 1,210 | 2.37 | 2.33 | 2.37 | 0.00 | 0.34 |
| QTC | 20-Jul-34 | 1.75 | 2,520 | 2.53 | 2.49 | 2.53 | -0.01 | 0.29 |
| WATC | 24-Oct-34 | 2.00 | 1,098 | 2.46 | 2.41 | 2.46 | 0.01 | 0.30 |
| QTC | 16-Apr-40 | 2.25 | 2,071 | 2.81 | 2.74 | 2.81 | 0.00 | 0.22 |
| NSWTC | 7-May-41 | 2.25 | 2,293 | 2.91 | 2.81 | 2.91 | 0.04 | 0.24 |
| QTC | 20-Nov-41 | 2.25 | 1,878 | 2.87 | 2.80 | 2.87 | 0.00 | 0.19 |