Australia Sells A$4 Billion of April 2025 Bonds in Record Issue

Australia sold A$4 billion ($3.9 billion) of bonds maturing in 2025, its biggest-ever offering of nominal debt, after the steepest advance in benchmark yields since January.

The 3.25 percent note maturing April 21, 2025, priced to yield 3.47 percent, the Canberra-based Australian Office of Financial Management said in an e-mailed statement today. Similar-maturity U.S. Treasuries yield 2.14 percent. Australia’s 10-year rate at 3.26 percent has risen 16 basis points in May.

Citigroup Inc., Deutsche Bank AG, UBS AG and Westpac Banking Corp. managed the offering, the AOFM said. There will be no further issuance of the bond before August, it said.

The 2025 bond was the first nominal security sold through a group of banks rather than at auction since October, when the nation sold A$3.26 billion of debt due in April 2029, its longest outstanding bond that isn’t inflation-linked.

Australian government debt declined 0.3 percent this month, paring gains that made the securities the best performers this year among nations that hold a AAA grade from all the three biggest ratings companies, Bank of America Merrill Lynch data show.

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