SINGAPORE, June 26 (Reuters) – Australia’s stock exchange operator, ASX Ltd, intends to launch a five-year Treasury bond futures contract later this year, it said on Friday.
The five-year futures contract would complement three-year and ten-year contracts which already trade.
“Given the amount of physical exposure that sits in between the three and ten Year contract and upcoming issuance … there is heightened need and demand for a 5 year point on the yield curve,” ASX Ltd said in a statement on its website.
Australia has been selling billions in debt weekly to pay for coronavirus stimulus. ASX said it aims to list the new contract late in the fourth quarter of 2020, subject to regulatory approval, with March 2021 the first expiry month.
The yield on five-year Australian government bonds last sat at 0.393%. (Reporting by Tom Westbrook, Editing by William Maclean)