Treasury Notes and twice weekly bond tenders make a comeback
The Australian Office of Financial Management yesterday spelled out its preliminary approach to selling all the extra government bonds required to finance the substantial deficits the government will incur over the next couple of years.There will be two tenders most weeks on Wednesdays and Fridays, with the amount offered at each tender normally in the range of $500 million to $700 million.Over the five months to the end of June 2009 the AOFM expects to sell between $22 billion to $24 billion in bonds.After a lull of some years Treasury Notes will also make a comeback to help manage government liquidity.