A quiet week in the bond market to end the first half

In the last full week of the first half of the calendar year there was relatively little bond issuance.

 The Australian Office of Financial Management was the most significant issuer in the domestic market, selling A$701 million of very short August 2010 bonds at an average yield of 3.42 per cent. The issue was oversubscribed by 3.8 times. There was no bond tender on Friday.

Rabobank Australia sold A$650 million of five-year bonds in two tranches. The fixed rate tranche amounted to A$350 million and the floating rate tranche to A$300 million. The bonds were priced at 130 basis points over swap/bank bills.

As for offshore issuance, Insto also reported that Toyota Finance Australia undertook a two-tranche Uridashi issue, raising A$415 million at 4.41 per cent and NZ$400 million at 3.9 per cent. Both raisings were for two years.

Suncorp-Metway raised a ¥13 billion (approximately A$170 million) for two years in the Samurai market. The government guaranteed bonds were priced at Libor plus 30 bps.

The CBA undertook a couple of small private placements offshore, raising US$90 million for one year and HK$80 million (A$13 million approximately) for three years.

Across the ditch, the New Zealand Debt Management Office sold NZ$50 million of December 2017 bonds and another NZ$150 million of May 2021 bonds. The former priced with an average yield of 6.07 per cent and was oversubscribed by more than three times while the latter priced with an average yield of 6.67 per cent and was oversubscribed 2.8 times.

Also, Kiwibank undertook an internal securitisation of NZ$600 million of its mortgages via Kiwibank RMBS Trust Series 2009-1. Fitch rated the NZ$585 million, Class A notes, 'AAA' but did not rate the NZ$15 million, Class B notes. The repo eligible securitisation has a ten year substitution period.