SYDNEY, March 31 (Reuters) – Australia’s debt market is on track to hit record post-pandemic bond sales this quarter, driven by higher rates and its safe investment appeal, but the boom now faces a critical test as the war in the Middle East tightens the deals pipeline.
The highest sovereign rates among G10 economies have attracted investors, while a deepening, stable market outside the U.S. has drawn a slew of global issuers to raise funds.
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More than A$92 billion ($63 billion) in investment grade debt has been sold in Aussie dollars so far in 2026, according to Informa Global Markets, setting the primary market on course to top last year’s record annual total of almost A$260 billion.
The quarterly figure is the biggest since 2020 and puts Australia within striking distance of overtaking sterling issuance, which hit $215 billion last year, according to Informa, making it the third-biggest market. Both markets are still far behind the $1.77 trillion equivalent sold in the euro market or $2.2 trillion sold in dollar investment grade debt last year. Dealogic figures show Australian dollar issuance tracking toward a record quarter and already ahead of sterling, in U.S. dollar value terms in 2025.
Both investors and bankers say it’s a long-awaited coming of age that shows how Australia has matured and how international capital flows are changing.
Australia’s coming-of-age bonds bonanza faces key sentiment test
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