Summary: Semi-government bond spreads about 1bp wider on average; NSWTC, QTC release 2022/2023 fund requirements.
Semi-government spreads finished the week about 1bp wider on average as semi-government yields almost kept up with the falls of their Commonwealth counterparts. The majority of spreads in the sample varied within or quite close to a range from -1bp to +8bps and the exceptions were limited to a some semis close to maturity.
The NSW Government published its budget forecasts on Tuesday. As a result, NSWTC expects a $28.3 billion funding requirement for 2022/2023, with maturing liabilities accounting for $4.4 billion and new loans accounting for $27.1 billion. $3.3 billion is expected to come from unused DRF funds. Moody’s flagged a possible downgrade shortly afterwards.
QTC also announced its 2022/2023 funding requirement on Tuesday. QTC expects a $14.4 billion funding requirement for 2022/2023, with maturing liabilities accounting for $6.2 billion and new loans accounting for $8.2 billion. $0.2 billion has already been pre-funded.
| ISSUER | MATURITY | COUPON (%) | ISSUE SIZE | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| QTC | 21-Jul-22 | 6.00 | 7,177 | 1.16 | 1.01 | 1.01 | -0.20 | 0.35 |
| SAFA | 22-Sep-22 | 1.50 | 2,062 | 1.64 | 1.61 | 1.64 | 0.02 | 0.48 |
| TCV | 17-Oct-22 | 6.00 | 3,730 | 1.98 | 1.88 | 1.88 | -0.08 | 0.59 |
| WATC | 20-Oct-22 | 2.75 | 3,001 | 1.74 | 1.69 | 1.69 | -0.01 | 0.44 |
| NTTC | 21-Nov-22 | 2.50 | 600 | 2.00 | 1.77 | 1.77 | -0.23 | 0.51 |
| NSWTC | 20-Apr-23 | 4.00 | 4,011 | 3.06 | 2.61 | 2.61 | -0.34 | 0.71 |
| NSWTC | 1-May-23 | 6.00 | 339 | 3.11 | 2.65 | 2.65 | -0.37 | 0.68 |
| QTC | 21-Jul-23 | 4.25 | 8,744 | 3.36 | 2.88 | 2.88 | -0.44 | 0.60 |
| WATC | 16-Oct-23 | 6.00 | 4,376 | 3.56 | 3.08 | 3.08 | -0.44 | 0.57 |
| SAFA | 20-Nov-23 | 4.25 | 1,520 | 3.68 | 3.20 | 3.20 | -0.42 | 0.60 |
| TCV | 21-Nov-23 | 1.00 | 1,122 | 3.64 | 3.18 | 3.18 | -0.46 | 0.61 |
| NSWTC | 8-Feb-24 | 5.25 | 4,692 | 3.70 | 3.22 | 3.22 | -0.48 | 0.68 |
| NTTC | 15-Mar-24 | 6.00 | 650 | 4.03 | 3.52 | 3.52 | -0.51 | 0.64 |
| TASCORP | 11-Jun-24 | 4.00 | 1,176 | 4.12 | 3.60 | 3.60 | -0.46 | 0.61 |
| QTC | 22-Jul-24 | 5.75 | 8,249 | 3.81 | 3.30 | 3.30 | -0.54 | 0.51 |
| WATC | 23-Jul-24 | 2.50 | 5,089 | 3.82 | 3.32 | 3.32 | -0.52 | 0.53 |
| SAFA | 15-Aug-24 | 2.25 | 3,128 | 3.90 | 3.41 | 3.41 | -0.50 | 0.56 |
| NSWTC | 20-Aug-24 | 5.00 | 4,324 | 3.83 | 3.36 | 3.36 | -0.45 | 0.61 |
| TCV | 17-Dec-24 | 5.50 | 6,518 | 3.89 | 3.43 | 3.43 | -0.48 | 0.52 |
| NSWTC | 20-Mar-25 | 5.25 | 2,100 | 3.94 | 3.53 | 3.53 | -0.41 | 0.55 |
| SAFA | 16-Apr-25 | 2.75 | 1,250 | 4.07 | 3.66 | 3.66 | -0.39 | 0.60 |
| ACTTREAS | 22-May-25 | 5.25 | 1,000 | 3.94 | 3.58 | 3.58 | -0.36 | 0.60 |
| QTC | 21-Jul-25 | 4.75 | 8,581 | 4.05 | 3.62 | 3.62 | -0.42 | 0.55 |
| WATC | 23-Jul-25 | 5.00 | 5,483 | 4.04 | 3.63 | 3.63 | -0.41 | 0.57 |
| TASCORP | 19-Feb-26 | 3.25 | 1,094 | 4.19 | 3.79 | 3.79 | -0.40 | 0.51 |
| NTTC | 15-Mar-26 | 6.00 | 650 | 4.04 | 3.65 | 3.65 | -0.39 | 0.48 |
| NSWTC | 20-May-26 | 4.00 | 5,323 | 4.15 | 3.76 | 3.76 | -0.38 | 0.60 |
| SAFA | 20-Jul-26 | 3.00 | 3,540 | 4.21 | 3.81 | 3.81 | -0.39 | 0.59 |
| QTC | 21-Jul-26 | 3.25 | 8,610 | 4.18 | 3.76 | 3.76 | -0.42 | 0.56 |
| TCV | 17-Nov-26 | 5.50 | 7,911 | 4.22 | 3.80 | 3.80 | -0.42 | 0.57 |
| NTTC | 21-Apr-27 | 5.50 | 600 | 4.21 | 3.83 | 3.83 | -0.38 | 0.49 |
| NSWTC | 20-May-27 | 3.00 | 8,861 | 4.24 | 3.85 | 3.85 | -0.39 | 0.57 |
| QTC | 20-Aug-27 | 2.75 | 8,794 | 4.27 | 3.83 | 3.83 | -0.45 | 0.53 |
| SAFA | 20-Sep-27 | 3.00 | 1,500 | 4.31 | 3.91 | 3.91 | -0.40 | 0.57 |
| WATC | 21-Oct-27 | 3.00 | 3,636 | 4.29 | 3.87 | 3.87 | -0.42 | 0.56 |
| NSWTC | 20-Mar-28 | 3.00 | 9,283 | 4.32 | 3.94 | 3.94 | -0.37 | 0.57 |
| SAFA | 24-May-28 | 3.00 | 3,040 | 4.36 | 3.99 | 3.99 | -0.38 | 0.56 |
| QTC | 21-Jul-28 | 3.25 | 8,520 | 4.34 | 3.92 | 3.92 | -0.42 | 0.52 |
| TCV | 20-Oct-28 | 3.00 | 8,639 | 4.41 | 4.03 | 4.03 | -0.38 | 0.58 |
| NSWTC | 20-Apr-29 | 3.00 | 9,153 | 4.42 | 4.05 | 4.05 | -0.37 | 0.56 |
| NTTC | 21-May-29 | 2.00 | 600 | 4.44 | 4.08 | 4.08 | -0.36 | 0.47 |
| ACTTREAS | 22-May-29 | 5.25 | 900 | 4.45 | 4.07 | 4.07 | -0.37 | 0.50 |
| WATC | 24-Jul-29 | 2.75 | 3,396 | 4.43 | 4.03 | 4.03 | -0.40 | 0.52 |
| QTC | 21-Aug-29 | 3.25 | 7,535 | 4.43 | 4.02 | 4.02 | -0.40 | 0.51 |
| TCV | 22-Oct-29 | 2.50 | 9,134 | 4.48 | 4.13 | 4.13 | -0.35 | 0.58 |
| NSWTC | 20-Feb-30 | 3.00 | 10,366 | 4.51 | 4.13 | 4.13 | -0.37 | 0.58 |
| NTTC | 21-May-30 | 2.00 | 750 | 4.55 | 4.20 | 4.20 | -0.35 | 0.50 |
| SAFA | 24-May-30 | 2.75 | 2,815 | 4.57 | 4.18 | 4.18 | -0.38 | 0.57 |
| QTC | 21-Aug-30 | 3.50 | 8,587 | 4.51 | 4.09 | 4.09 | -0.41 | 0.52 |
| TCV | 20-Nov-30 | 5.25 | 7,132 | 4.60 | 4.22 | 4.22 | -0.38 | 0.59 |
| NSWTC | 20-Mar-31 | 2.00 | 8,862 | 4.60 | 4.23 | 4.23 | -0.37 | 0.58 |
| NTTC | 21-Apr-31 | 5.25 | 750 | 4.69 | 4.33 | 4.33 | -0.35 | 0.50 |
| QTC | 21-Aug-31 | 1.75 | 7,357 | 4.61 | 4.20 | 4.20 | -0.41 | 0.53 |
| ACTTREAS | 23-Oct-31 | 5.25 | 1,000 | 4.64 | 4.26 | 4.26 | -0.38 | 0.51 |
| SAFA | 24-May-32 | 5.25 | 2,560 | 4.70 | 4.33 | 4.33 | -0.38 | 0.58 |
| TCV | 20-Dec-32 | 4.25 | 6,535 | 4.70 | 4.36 | 4.36 | -0.34 | 0.61 |
| NSWTC | 8-Mar-33 | 5.25 | 4,392 | 4.74 | 4.39 | 4.39 | -0.36 | 0.61 |
| QTC | 14-Mar-33 | 6.50 | 726 | 4.68 | 4.28 | 4.28 | -0.40 | 0.55 |
| QTC | 20-Jul-34 | 1.75 | 4,330 | 4.84 | 4.45 | 4.45 | -0.39 | 0.55 |
| WATC | 24-Oct-34 | 2.00 | 1,113 | 4.78 | 4.38 | 4.38 | -0.40 | 0.52 |
| QTC | 16-Apr-40 | 2.25 | 1,882 | 4.86 | 4.44 | 4.44 | -0.42 | 0.33 |
| NSWTC | 7-May-41 | 2.25 | 2,293 | 4.91 | 4.51 | 4.51 | -0.40 | 0.32 |
| QTC | 20-Nov-41 | 2.25 | 1,781 | 4.90 | 4.49 | 4.49 | -0.41 | 0.32 |