A change in the funding policy of the Australian government may drive investors, including managers of the liquidity books of banks, to reconsider their options.
The Australian Office of Financial Management said the A$10 billion "floor" on the issue of Treasury Notes "will no longer be maintained and there are expected to be times when there will be no Treasury Notes on issue."
The AOFM had $19.5 billion in T-notes on issue as of last week.
The AOFM said in an operational notice yesterday that it planned to "reduce the exposure to refinancing risk associated with...
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