STIR: BOJ Dated-OIS Firmer Than Pre-Jan MPM Levels

The Australian Office of Financial Management (AOFM) will today sell A$300mn of the 4.75% 21 June 2054 Treasury Bond. The line was last sold on 8 December 2025 for A$300mn. Several key factors will likely shape investor demand at today’s auction: 

• The bond’s outright yield is ~5bps lower than the previous auction, approximately 10bps below the cycle high.
• Sentiment toward longer-dated global bonds remains uncertain, which may limit demand.
• Moreover, the 10s/30s yield curve is slightly flatter than the previous outing and around 25bps below its recent high, its steepest level since 2021 — a potentially negative technical factor.
• Overall, pricing is expected to remain firm, underpinned by a stable yield profile and a more attractive curve backdrop.
• Results are due at 0000 GMT / 1100 AEST.

US president Trump has flagged Microsoft will make an announcement this week around data centers and electricity use. Rtrs had the following headline: "TRUMP: TRUMP: MICROSOFT WILL MAKE MAJOR CHANGES BEGINNING THIS WEEK TO ENSURE AMERICANS DON'T PAY FOR THEIR POWER CONSUMPTION IN FORM OF HIGHER UTILITY BILLS - [RTRS]" This hints at more measures around cost of living relief for American households, which appears to be a key policy initiative this year. Recent focus has also been on housing affordability and efforts to lower mortgage rates. The full Trump Truth Social post is outlined below. 

• "Under Sleepy Joe Biden and the Radical Left Democrats, the average American Household’s monthly Utility bills went up MASSIVELY — over 30%! I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks. First up is Microsoft, who my team has been working with, and which will make major changes beginning this week to ensure that Americans don’t “pick up the tab” for their POWER consumption, in the form of paying higher Utility bills. We are the “HOTTEST” Country in the World, and Number One in AI. Data Centers are key to that boom, and keeping Americans FREE and SECURE but, the big Technology Companies who build them must “pay their own way.” Thank you, and congratulations to Microsoft. More to come soon! President DJT' 

The Australian Office of Financial Management (AOFM) will today sell A$300mn of the 4.75% 21 June 2054 Treasury Bond. The line was last sold on 8 December 2025 for A$300mn. The sale drew an average yield of 5.2512%, at a high yield of 5.2525% and was covered 3.4333x. There were 47 bidders, 13 of which were successful and 6 were allocated in full. The amount allotted at the highest yield as a percentage of the bid at that yield was 80.5%.

• This week's ACGB supply is at the recent weekly issuance average of $2000mn, with A$1000mn of the 4.25% 21 October 2036 bond on Wednesday and A$700mn of the 3.25% 21 April 2029 bond on Friday.
• The Australian Government has released the Mid-Year Economic and Fiscal Outlook (MYEFO). This notice provides updated guidance on planned issuance of Australian Government Securities by the AOFM in 2025-26.
• Planned issuance of Treasury Bonds (including Green Treasury Bonds) for 2025-26 has been revised to around $125 billion (of which $62.5 billion has been completed). Planned issuance of Treasury Indexed Bonds in 2025-26 remains between $2 billion and $3 billion (of which $1.5 billion has been completed).
• Over the remainder of 2025-26, the AOFM plans to: Issue a new October 2037 Treasury Bond (by syndication and subject to market conditions); Issue a new June 2036 Green Treasury Bond (by syndication and subject to market conditions); Conduct Treasury Bond tenders most weeks; and Hold 1-2 Treasury Indexed Bond tenders each month.
• Results are due at 0000 GMT / 1100 AEST.