The Australian government has sold $7 billion of a new line of April 21, 2037 Treasury bonds.

The Australian Office of Financial Management said the bonds were priced at a yield to maturity of 3.945 per cent.

That was 62 basis points above the implied bid yield on 10 year bond futures on Wednesday afternoon, in line with the guidance from the AOFM that the issue would likely yield 60 to 65 basis points above futures.

The size of the issue was unusually large, but the AOFM had flagged a “benchmark size” issue for the new bond.

Joint-lead managers for the syndicated issue were ANZ, Citi, UBS AG Australia Branch and Westpac Institutional Bank, the AOFM said.