Australia’s bond market notches record sales in 2026, data from CBA shows
TLT•Australian bond issuance reached A$326.7 billion in 2026 as of Monday, topping the 2024 record of A$324.7 billion. The fixed-income market has grown 46% in five years to A$2.9 trillion, and CBA expects it to reach A$4 trillion by 2031.
1. Issuance sets record
Total Australian bond issuance reached A$326.7 billion this year as of Monday, surpassing the previous record set in 2024. Domestic issuance rose 28% in the first nine months from a year earlier, while offshore borrowers’ Kangaroo bond issuance increased 16.6%.
2. Investor demand grows
Analysts cited high interest rates, Australia’s reputation as a safe investment destination, strong capital markets and relatively sound government finances as factors behind the growth. Alphabet raised A$5.5 billion in its first Australian-dollar debt sale in August, with investor bids topping A$18 billion.
3. Market expands
The fixed-income market has grown 46% over five years to A$2.9 trillion, and CBA expects it to reach A$4 trillion by 2031. Australian government bonds have held up better than US Treasuries during the global bond selloff, while the spread between 10-year Australian and US yields narrowed to 10 basis points from about 40 basis points in mid-September.
