CBA Recap The Latest Round Of Comments From The AOFM CEO

CBA note that Thursday saw the AOFM CEO suggest that "the borrowing task for 20/21 was currently believed to be about A$240bn. Notably, that estimate implies that there would be little new spending at Budget. Mr Nicholl reaffirmed the guidance A$4-5bn of nominals and A$2-4bn of notes, per week, until the Budget (expected to be October 6). The AOFM sees declining gains in liquidity past a volume of around A$35bn. That means a third bond line per year might be Preferable to further growth in the current outstandings. The obvious candidate would be in the 3-5 year space, since there are already two lines per year there, while there is only one line per year in 2031, 2032 and 2033. Perhaps somewhere near the Apr '26? He suggested tap syndications could be as large as A$6bn. He also suggested a new 2043/2044 line would be syndicated in 21/22 to provide liquidity in the 20Y zone."