Australia cuts bond supply on faster economic recovery

In a sign of confidence in the rebounding economy, the Australian Office of Financial Management has cut its planned Treasury Bond issuance for 2020/21 by A$10 billion ($7.6 billion) to A$230 billion, according to Reuters. Around two-thirds (A$153.5 billion) of the bond issuance has already been completed.

The government’s updated economic and budget forecasts released Thursday carried an upward revision to its 2021 GDP forecast, to 4.5% from 4.25%, while the economy is now expected to contract just 2.5% in 2020, following the third quarter's 3.3% GDP bounce.