Senate Economics Legislation Committee [Part 2], , 3:15:00 to 3:18:35
The Australian Office of Financial Management (AOFM) provides an update on debt securities issuance, market liquidity, and the implementation of recommendations from an independent review.
Topics: Government spending, Procurement
Speakers: Anna Hughes, Senator Lisa Darmanin
into it. Uh, the committee now welcomes representatives from the Australian Office of Financial Management. I welcome uh Miss Anna Hughes, chief executive officer, Australian Office of Financial Management. Do you wish to make an opening statement?
>> Uh, I would like to make a very short opening statement. Uh, so thank you so much for the opportunity to make an opening statement. Uh, since last Senate estimates, the Australian Office of Financial Management has continued to focus on its core purposes, issuing debt securities on behalf of the Australian government, managing cash and debt portfolios, and implementing initiatives in the Australian securitization market. Geopolitical tensions in the Middle East continue to contribute to uh energy price volatility and inflation uncertainty. Sovereign bond markets remain functional with yields elevated and occasionally volatile. Central bank policy expectations remain a key market driver of global sovereign bond yields amid persistent inflation risks. Despite the prevailing volatility, the Australian government, Australian Commonwealth government bond market has remained functional, deep and liquid. The depth and liquidity of the ACGB market together with Australia's modest debt levels and smaller deficits relative to global peers remains appealing to investors. Tenders across all three AFM funding instruments, treasury bonds, treasury index bonds, and treasury notes have proceeded smoothly, supported by consistently solid demand from market participants. Coverage ratios and tender spreads uh to mid-market levels have remained strong. I'd like to provide the committee with an update on the progress of our issuance plans for 2627 financial year. for 2627 based on budget estimates. Well, sorry.
>> Is it is this a short statement?
>> Very short.
>> Okay. If we could go as quick as we can because we are running quite short on
time. >> All righty. >> Okay. Can I do maybe last two paragraphs? >> Sure. >> Okay. We can talk about issuance. Um just in regards to the um independent review um which was released on the 26th of April 26 uh can confirm that AOFM is um it confirmed that the AFM is continuing to perform its core functions uh and that the sovereign debt management program is highly regarded by market participants. Uh the treasury and the AUFM agreed to six recommendations identified by the review and as at October 26 the AOFM and Treasury have fully implemented four of the six recommendations uh as well as um progressing on the remaining two. Uh in regards to the organization um I'm pleased to share that 100% of AFM participated in our APS employment survey. uh we saw improvement in results across uh all indices uh and they exceeded APS average on every measure results improved uh from 20 25 in 96% of questions demonstrating the focused efforts uh have translated into positive improvements in leadership communication and over organ organizational structure. Uh alongside these results, our workforce remains stable with staff turnover for 2526 being 16% uh below the 5-year average of 22%. Uh thank you for the opportunity to do a truncated version of the opening statement and I welcome your questions.