Investor Handout December 2014. 2 Australian Government Securities 1 of 12 AAA (stable) sovereigns...
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Investor Handout December 2014. 2 Australian Government Securities 1 of 12 AAA (stable) sovereigns as rated by S&P 1 of 9 AAA (stable) sovereigns as rated
2 Australian Government Securities 1 of 12 AAA (stable)
sovereigns as rated by S&P 1 of 9 AAA (stable) sovereigns as
rated by Fitch, Moodys and S&P 1 of 4 S&P AAA (stable)
sovereigns with bond markets over USD 250b Australian Government
Credit AAA ~ Stable Aaa ~ Stable Source: Bloomberg, Fitch, Moodys,
S&P Last affirmed: 24 March 2014 Last affirmed: 25 June 2014
Last affirmed: 28 July 2014
Slide 3
Major Economic Parameters MYEFO 2014-15 Source: Treasury MYEFO
2014-15 3
Slide 4
4 Growth in real GDP Annual growth rate Source: Australian
Bureau of Statistics, Treasury MYEFO 2014-15
Slide 5
5 A diversified economic base Gross Value Added by Industry
Source: Australian Bureau of Statistics
Slide 6
6 Contributions to GDP growth Note: Business Investment and
Public Expenditure have been adjusted for second-hand asset sales
between the public sector and private sector Source: Australian
Bureau of Statistics, Treasury MYEFO 2014-15 Where Australia has
been Economic growth primarily driven by household consumption and
business investment. Resource and mining infrastructure is being
built during this period and net exports are a detractor from
growth. Where Australia is going Economic growth will continue to
be aided by household consumption (a long standing feature of the
Australian economy), but now net exports as opposed to business
investment also feature. Resource projects are coming online and
the export stage is expected to add significantly to growth over
the coming years. 2002-03 to 2013-14 2014-15 to 2017-18
(forecast)
Slide 7
7 Contributors to growth in Business Investment Source:
Treasury Consistent with CAPEX data, the outlook for Business
Investment in 2014-15 remains subdued, with growth likely again to
be below trend. However, there are some positive signs including a
rise in approvals for non-residential building over 2013.
Non-resources investment is forecast to pick up in 2015-16 as firms
start to respond to improving demand and existing levels of spare
capacity are absorbed, with GDP growth returning towards
trend.
Slide 8
8 Terms of Trade Source: Australian Bureau of Statistics,
Treasury MYEFO 2014-15
Slide 9
9 Labour market Annual data for year ending 30 June Source:
Australian Bureau of Statistics, Treasury MYEFO 2014-15
Slide 10
Headline & underlying inflation Source: Australian Bureau
of Statistics, Treasury MYEFO 2014-15 10
Slide 11
International interest in ACGBs Source: Australian Office of
Financial Management, Australian Bureau of Statistics 11
Slide 12
What drives the change in non-resident holdings Source:
Australian Bureau of Statistics, Reserve Bank of Australia,
Australian Office of Financial Management 12
14 Australias Net Debt Position Source: Treasury MYEFO
2014-15
Slide 15
15 20 lines currently on offer 10 lines with more than AUD 15
billion on issue Maturities from 2015 to 2037 7 lines currently on
offer Maturities from 2015 to 2035 Australian Government Securities
Source: Australian Office of Financial Management 3 lines currently
on offer Maturities typically less than 6 months
Slide 16
Source: Australian Office of Financial Management, Australian
Bureau of Statistics, Treasury MYEFO 2014-15 Australian Government
Bonds on issue 16
Slide 17
17 Treasury Bonds 20 lines on issue, 10 of which have more than
AUD 15 billion outstanding Source: Australian Office of Financial
Management
Slide 18
18 Treasury Indexed Bonds Amount shown is the face value
unadjusted for changes in the CPI adjusted capital value of the
bond Source: Australian Office of Financial Management Note: On 2
May 2014, the AOFM conducted a conversion tender that offered an
opportunity to holders of the August 2015 TIB to convert their
holdings into the November 2018 TIB line. The outcome of which saw
AUD 2.03893 billion face value converted from the August 2015 line
into the November 2018 line and thereby reducing the volume on
issue of the August 2015 to AUD 1.156839 billion.
Slide 19
19 Market Makers Treasury Bonds 18 major international and
domestic institutions willing to make markets in Treasury
Bonds
Slide 20
20 Market Makers Treasury Indexed Bonds 10 major international
and domestic institutions willing to make markets in Treasury
Indexed Bonds