Government debt months away from $1trn, but nobody is panicking (yet)

The federal government’s total borrowings will cross the $1 trillion mark for the first time within months, with fund managers expecting a bigger debt pile will not be a negative but instead attract more bond investors.

Official figures show the Commonwealth owes $961 billion, with RBC Capital Markets strategist Robert Thompson predicting the $1 trillion mark won’t be reached until early next year. That’s because, while the Australian Office of Financial Management is adding about $10 billion in borrowings every month, some $45 billion in bonds mature just before Christmas.

Source: https://www.afr.com/markets/debt-markets/government-debt-months-away-from-1trn-but-nobody-is-panicking-yet-20250902-p5mrq5