When the Australian government asked for bids for a new bond this week it was bowled over in the rush.
Australian government bonds have long proved popular with investors because of the robust domestic economy and its AAA-rating which makes it among the safest sovereign debt available. The Australian Office of Financial Management, which handles around $100 billion of bond sales on behalf of the government each year, is almost always met with more demand than supply.
But demand for Australian bonds hit a record on Wednesday when a $15 billion parcel of 11-year bonds attracted more than $84 billion in bids from commercial and central banks, fund managers and hedge funds.
Source: https://www.afr.com/markets/debt-markets/investors-storm-bond-sale-ahead-of-possible-rba-rate-cut-20250205-p5l9vs