Disclaimer: Please note that the information on this website does not constitute investment advice. You should obtain independent financial advice before buying Treasury Bonds.
Treasury Bonds are medium to long-term debt securities issued by the Australian Government that carry an annual rate of interest fixed over the life of the security, known as the Coupon Interest Rate. Coupon Interest Payments are made every six months. On the Maturity Date, the last Coupon Interest Payment and the Face Value amount of the Treasury Bond are paid to the bond holder. The Australian Government is liable to make these payments.
Institutional and other large investors choose to own Treasury Bonds because they provide stable, regular income paid by the Australian Government and are liquid (easy to buy and sell).
Treasury Bonds are not traded on an exchange and are typically traded in large parcels, putting them beyond the reach of many investors. On the Australian Securities Exchange (ASX), Treasury Bonds are traded in the form of CHESS Depositary Interests (CDIs) known as Exchange-traded Treasury Bonds (eTBs). eTBs have the appeal and convenience of being electronically bought and sold through the ASX in small or large parcels.
More information about investing and trading in eTBs can be found in Buying and selling eTBs and in the Exchange-traded Australian Government Bonds section of the ASX website.
If you are a wholesale investor interested in investing in Treasury Bonds, see the Australian Office of Financial Management (AOFM) website. The AOFM is the debt management office for the Australian Government and issues Treasury Bonds into the primary market by competitive tender or syndication. A list of active market makers is available in the Investor Relations section for Institutional Investors.