Total issuance of Treasury bonds in 2003-04 is expected to be between $2 billion and $3 billion. Further issuance into the existing April 2015 Treasury bond line will be undertaken to ensure the volume of this bond outstanding is similar to other benchmark lines. Issuance is likely to be in tranches throughout the year. It is expected a new long-dated bond will be issued towards the second half of 2003-04 with a term to maturity around 13 years. This bond is expected to support the 10-year futures contract in 2004-05.
Given the current profile of Treasury bonds outstanding it will not be necessary to issue a new bond with a maturity of around 5 years in 2003-04. There are currently sufficient bonds on issue with this maturity to support the 3-year futures contract. Issuance of a new benchmark with a term to maturity around 5 years will be reconsidered in the context of the 2004-05 Budget.
In light of the issuance strategy, the Commonwealth will not generally seek to undertake repurchases. However, transactions may be undertaken to improve the overall efficiency of the Treasury bond market.
No further repurchases or conversion tenders involving the 10 per cent coupon October 2007 Treasury bond will be undertaken. This will ensure an adequate level of liquidity is available around this maturity.