Housing in focus but analysts identify RBA reluctance to preordain further cuts
The Reserve Bank of Australia (RBA)’s decision to cut the cash rate on 4 June surprised no-one. Analysts are focusing on a perceived lack of dovish intent in the RBA statement, while an economic forum conducted immediately prior to the cut identified the local housing market – rather than global trade uncertainty – as the primary likely driver of future rates direction.
Reverse enquiry spurs TCV’s 2034 issuance
Treasury Corporation of Victoria (TCV) added a new line to the long end of its curve on 3 June, with a A$267 million (US$186.4 million) November 2034 syndication led by Westpac Institutional Bank. The deal was driven by reverse-enquiry demand out of Asia.
NZDM revises 2019/20 borrowing requirement up by NZ$2 billion
On 30 May following the release of the New Zealand budget, New Zealand Debt Management (NZDM) revealed a NZ$10 billion (US$6.5 billion) borrowing requirement for the 2019/20 financial year. The programme is NZ$2 billion higher than forecast at the half-year economic and fiscal update (HYEFU) in December 2018.
Svenska Handelsbanken meets its objectives in Kangaroo return
Svenska Handelsbanken prioritised spread over volume in its Kangaroo return on 22 May, deal sources suggest, with pricing within its global curve a clear priority. The transaction is also the first financial-institution Kangaroo deal to print in 2019. Leads say this is because of favourable funding conditions globally and a range of available issuance formats.
AOFM’s new-line strategy in the spotlight
The Australian Office of Financial Management (AOFM) issued a new line by tender on 29 May. A lower net-new-issuance requirement has allowed the sovereign borrower to weight its issuance strategy towards tenders this financial year, only using syndication to debut a new 2041 nominal bond and a 2050 inflation-indexed bond.