Nov. 5 (Bloomberg) -- Australia’s government will sell at least A$50 billion ($45.3 billion) in bonds for the year to June 30, 2010, down by as much as A$10 billion from May estimates, as the economy expands faster than the Treasury had forecast.

The government will sell between A$32 billion and A$34 billion of bonds through to the end of the fiscal year, on top of A$18.2 billion of auctions since July 1, the Australian Office of Financial Management said today on its Web site.

“Our economy is stronger, our unemployment is lower, and the budget position has improved substantially from the forecasts in the May budget,” Treasurer Wayne Swan said today in Melbourne.

Australia’s economy avoided sliding into recession this year after Swan’s government handed out A$20 billion ($18 billion) in government cash to consumers and the Reserve Bank of Australia cut interest rates to a half-century low to combat the effects of the global financial crisis.

Australian exports rose in September by the most in almost a year, underpinning an economic rebound that prompted central bank Governor Glenn Stevens to raise interest rates in October and again on Nov. 3.

Exports, Inflation Bonds

Exports jumped 5 percent from August, driven by increased shipments of coal and gold, the Bureau of Statistics said in Sydney today. The gain helped offset rising imports that widened the trade deficit to A$1.85 billion (A$1.68 billion), less than the A$2.15 billion estimate in a Bloomberg survey.

Australian government bonds rose. The yield on 10-year notes fell four basis points, or 0.04 percentage point, to 5.56 percent, according to data compiled by Bloomberg. The price of the 5.25 percent security due March 2019 gained 0.289, or A$2.89 per A$1,000 face amount, to 97.771.

The government will sell as much as A$2 billion more of inflation-indexed notes, starting with a A$300 million sale on Nov. 16 of bonds maturing in August 2020, the AOFM said. A new bond issue, of securities maturing in 2022, will be offered in quarter ending June 30, 2010, the government said. Australia’s longest-dated debt currently matures in 2021.

Legislation to make government securities exempt from non- resident interest withholding tax will likely be considered by the Senate between Nov. 16 and 26, the AOFM said.

Treasury bond tenders will be held on most Wednesdays and Fridays with details announced on the preceding Friday, the AOFM said. Tenders will be suspended between mid-December and mid- January, according to the statement. The inflation-linked bonds will be auctioned on Mondays, it said.

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

Last Updated: November 5, 2009 00:06 EST