There were 58 total bids of $ 8.2 billion in debt with the highest bid of 0.07 percent. The lowest level was 0.01 percent.
The higher the number of bids, the lower the final interest rate on the debt.
AOFM sold 37 percent of the debt for less than 0.01 percent.
A separate $ 500 million tender, due for payment in July next year, attracted a bid, down 0.01 percent.
Inflation-related government bonds have been sold at negative rates from time to time, but this is the first time that Treasuries have been sold, as the interest rate is fixed, at a negative level.
Data released Thursday by the Parliamentary Budget Office on the country’s long-term budget trends indicated that global interest rates will keep total interest payments low despite historically high levels of debt.
“While government debt is now greater than it was in 2018-2019 as a result of the epidemic and the associated policy response, interest rates are historically low, which keeps interest payments stable as a percentage of GDP,” the report said.
“Low interest rates reflect recent weakness in economic growth and rate growth and the Reserve Bank of Australia has sought to support the Australian economy.
“ Other central banks around the world are also setting low interest rates, in part for the stimulus
Their economies. “
Avid music fanatic. Communicator. Social media expert. Award-winning bacon scholar. Alcohol fan.