Closure of Reserve Bank Small Investor Bond Facility
The facility for small investors to purchase Commonwealth Government Bonds through the Reserve Bank ceased as at close of business on Monday, 20 May 2013.
From Tuesday, 21 May 2013 the quotation and trading of Exchange-traded Commonwealth Government Bonds commenced on the Australian Securities Exchange. This offers a way for investors to purchase these securities in the form of CHESS Depository Interests (CDIs). These securities will now be called Exchange-traded Treasury Bonds and Exchange-traded Treasury Indexed Bonds. All of the benefits (including coupon and principal payments) attached to legal ownership of Treasury Bonds and Treasury Indexed Bonds will come with ownership of these CDIs.
More information can be obtained from the following links:
www.aofm.gov.au/content/notices/2013/03.asp
www.aofm.gov.au/content/notices/2013/04.asp
www.australiangovernmentbonds.gov.au
www.asx.com.au/agb
www.moneysmart.gov.au/investing/investments-paying-interest/bonds/australian-government-bonds
It is still possible for existing investors to sell their holdings of AGBs through the Bank's facility until further notice.
Additionally, a facility is being developed to allow existing inscribed stock investors of Treasury Bonds and Treasury Indexed Bonds to convert their holdings respectively into Exchange-traded Treasury Bonds and Exchange-traded Treasury Indexed Bonds.
- The Australian Office of Financial Management (AOFM) will provide written notification to investors of this service when the conversion facility is available.
- Until that time, existing investors may decide to sell their holdings of Treasury Bonds and Treasury Indexed Bonds to the Bank and reinvest in Exchange-traded AGBs if they wish.
