News

On 16 July, the Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) launched its new May 2041 Treasury bond benchmark syndicated transaction. The forthcoming deal is being marketed at 39.5-44.5 basis points over the implied bid yield for the primary ten-year Treasury Bond futures contract. Pricing is expected on the day after launch.

Major bank primary deal flow returned to the Australian domestic market in the second week of July, with ANZ Banking Group's A$2 billion (US$1.5 billion) dual-tranche three-year domestic deal. Meanwhile in New Zealand, WEL Networks set the rate for its NZ$150 million (US$101.6 million) five-year subordinated deal.

A trio of subordinated corporate debt deals priced in New Zealand between late May and early July, in what intermediaries say is a sign that local retail investors are supportive of issuance despite challenges in other funding markets. Scarcity of debt securities with the attractive headline yield offered by sub debt drove demand, they add.

On 12 July, Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$100 million (US$73.8 million) 11-year Kangaroo transaction. Indicative price guidance for the forthcoming deal is 41 basis points area over semi-quarterly swap, equivalent to 55.25 basis points area over Australian Commonwealth government bond.

United Overseas Bank Sydney Branch (UOB Sydney) (AA-/Aa1/AA-) mandated a new domestic 3.5-year senior floating-rate deal on 11 July. ANZ, National Australia Bank, UBS and UOB are leading, with launch and pricing expected in the near future.

On 11 July, Columbus Capital launched its residential mortgage-backed securities transaction, Triton 2018-1. The deal has an indicative total volume of A$500 million (US$371.1 million) equivalent, including the US dollar denominated Class A1-US notes.