Yesterday, the Australian Office of Financial Management issued, via syndication, A$5.9 billion of a new 4.5 per cent 21 April 2033 Treasury bond. This bond extends the Australian Commonwealth Government Bond yield curve by four years to 20 years, bringing it more into line with other AAA-rated global bond markets, according to ANZ rates' strategist, Zoe McHugh. McHugh said the new issue takes total bonds on issue for this financial year to $35.5 billion - half the new issuance that the AOFM said it needed this year. It also further increases the liquidity and transparency of the Australian government bond market. The new ACGB line also adds impetus to other debt markets. "A longer-dated curve is a welcome step for the continued development of Australia's corporate and infrastructure bond markets," McHugh said."It could also provide further impetus for the states to extend their own curves in order to help fund their infrastructure needs."On McHugh's numbers, the bond priced at 71 basis points above the implied yield of the 10-year future, and at around 24 bps above the April 2029 bond, which had been Australia's longest-dated bondMark Todd, director of fixed income sales at FIIG, a specialist fixed-income broker, said he thought the bonds were "fairly priced" at about 70 bps over the 10-year curve. "We thought it might go slightly higher, as market commentary was indicating it would be more like 75 to 77 bps over the curve. The tighter pricing is an endorsement by the market, which has been crying out for a long-dated bond. "An extension on the government curve means it's a terrific opportunity to then extend the corporate bond curve - [to boost the corporate bond market].""Looking at the US 10-year and 20-year curves on an extrapolated basis, the difference is about 74 basis points," Todd said. "The AOFM has done better than its counterparts in the US Treasury - it's only four basis points, but it's a really good endorsement of the Australian capacity to fund, and a great initiative," he said.The deal was priced at a yield to maturity of 4.86 per cent. This equates to a gross price of $95.951 per $100 face value of the bond, consisting of a capital price of $95.506 and accrued interest component of $0.445, according to a note from the AOFM.Settlement of the issue is on 26 November 2013. The AOFM also announced that there will be no further issuance of this Treasury bond prior to April 2014, and it "will be mindful of the performance of the bond when considering the timing of issuance from then." ANZ, Citi and UBS Australia were joint lead managers for the issue.  Deutsche Bank, JP Morgan Australia and Westpac Institutional Bank were co-managers.