The explosive growth in Australia’s debt market has helped it become a major global funding source.

There has been a lot of talk this week about the explosive increase in local and global issuance into the Australian bond market. This begs the question: What is driving the seemingly insatiable appetite for local debt securities?

We have certainly seen monster supply: in the first half of 2025, total investment-grade government and corporate bond issuance in Australian dollars, excluding asset-backed securities, was $271 billion. That’s 156 per cent larger than the supply observed in the first half of 2019, just prior to the pandemic.

Loading…