SYDNEY, April 15 (Reuters) - Australia sold a record A$13 billion ($8.3 billion) of sovereign bonds on Wednesday as the government boosts its spending to shield the economy from a deep coronavirus-driven recession.
The November 2024 debt was sold at a yield-to-maturity of 0.47%, the Australian Office of Financial Management said in a statement.
The bond, which was launched on Friday, received bids totalling A$25.8 billion in a sign of solid demand for the AAA-rated papers.
The fund raising is the highest since a A$11 billion bond sale in 2017.
"With the bond looking this cheap, it's little surprise the book is so large. The AOFM will have the option of executing an exceptionally large deal if they choose to," Commonwealth Bank analysts wrote in a note.
They noted that the coupon rate of 0.25% on the bond was "surprisingly small."
"We're not sure why the AOFM has chosen that coupon level. Perhaps it's to give the market a bond to buy where the coupon is under the prevailing yields and so a price less than par."
The issuance comes as the coronavirus pandemic threatens to push Australia's A$2 trillion economy into its first recession in 30 years.
Preliminary data and surveys are pointing to soaring unemployment, depressed consumer spending and plunging business confidence. the total number of infections is slowing in Australia, the outbreak has spread from less than 100 cases last month to around 6,500 now, killing 62.
To support the economy, Australia's government has announced a A$320 billion ($205.3 billion) package, including a job-keeper allowance to help businesses keep staff.
Analysts at ANZ Banking Group estimate the government could sell more than A$250 billion of bonds in the next 15 months to fund these measures. ($1 = 1.5618 Australian dollars)