The AOFM, the financing body of the Australian Federal Government, typically holds several bond tenders each and every week of the year as it manages the government’s debt positions. Normally, tenders of Federal Government bonds are fairly tepid affairs and unkind people would say they have all the excitement of watching paint dry. However, Wednesday’s tender of $800 million April 2029s drew a bit of attention and got tongues wagging. Well, at least for a day or two, anyway.
The reason this particular tender stood out can be seen in the following email sent by the AOFM to interested parties giving details of the results of the tender:
As readers can see, there was one successful bidder and that one bid was filled “in full”. In other words, someone bid for $800 million worth at a yield above everyone else and they got the lot, leaving nothing for any of the other bidders.