Australia Plans Longest Bond at 20 Years Amid Debt Ceiling Spat
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Australia plans to sell 20-year notes, its longest-tenor nominal bond ever, fulfilling a promise by Treasurer Joe Hockey to extend the yield curve as the government seeks to finance ongoing budget deficits.
The country will next week sell a new line of April 2033 notes in a transaction led by banks, the Australian Office of Financial Management said today in a statement. The transaction will be the third new federal bond issued via syndication this year. Benchmark 10-year notes yielded 4.21 percent today, compared with an average of 5.95 percent over the past 20 years.