Economics
Aussie Debt Swells Faster Than Global Demand Amid Resources Rout
- Foreigners' share of government bonds down to least since 2009
- Mid-year update from Treasurer Morrison to show revenue drop
This article is for subscribers only.
However fast the biggest buyers of Australia’s sovereign bonds boost purchases, they aren’t keeping pace with debt issuance as a commodity collapse pulls down government revenue.
Foreign holdings of outstanding Federal debt slid to 63.6 percent in the September quarter, the least since 2009, official data show. That’s even after investors added nearly A$12 billion ($8.8 billion), the most since 2013. The Australian Office of Financial Management will probably increase its A$78 billion borrowing plans for the 12 months ending June 30 after Treasurer Scott Morrison hands down a mid-year economic and fiscal outlook later this month, according to Royal Bank of Canada.