Westpac note that "the AOFM has........>

AUSSIE BONDS: Westpac note that "the AOFM has completed its issuance programme

for the 2020-21 fiscal year. In total, the AOFM issued a record A$219.8bn, more

than double its previous largest total and well above its MYEFO estimate. There

was A$128bn in nominal bonds issued, A$1.65bn indexed linked and a record

A$89.9bn Treasury Notes. Of note is the massive increase in 0 to 5yr nominal

issuance once the accelerated issuance began in March. That would largely

correspond with the fact that the stimulus packages have a finite end, as is the

fact that Treasury Note maturities skewed longer in that period as well. We

estimate that the 2020-21 Long Term borrowing programme will be A$209.1bn, with

nominals outstanding around A$747.4bn and Linkers A$41.6bn. We also expect the

surge in Treasury Note issuance, which was in place even before the pandemic to

remain in place, especially while the RBA maintains significant Surplus ES in

the system."