Bonds are making a hit on the financial market.

The Australian Office of Financial Management (AOFM) was able to sell $1.2 billion of Treasury bonds that mature on October 21, 2014. The bonds carry a weighted average issue yield of 4.7561 percent and a coupon rate of 4.50 percent.

Bids accepted ranged from yields of 4.745 percent to 4.765 percent, while the coverage ratio or the ratio of bids received to the value of bonds offered was 2.74.

A total of 60 bids were noted for the issue worth a total of $3.293 billion. Twenty eight of the total bids were successful, while 19 of them allocated in full.

The Reserve Bank of Australia (RBA) took up $50 million of the offer. The settlement is on Wednesday, September 15.

The total Commonwealth Government Securities on issue is $156,993 million. The securities are made up of $129,542 million of treasury bonds, $11,079 million of treasury indexed bonds, $16,300 million of treasury notes, and $22 million of other securities.

The AOFM plans to hold a tender for the issue of $600 million of Treasury Notes maturing on 12 November 2010 and $600 million of Treasury Notes maturing on 3 December 2010 on Thursday, 16 September 2010. Another tender is planned on the day that follows for the issue of $700 million of the April 2015 Bond line.