Australia Treasury

Australia's Treasury just called for an independent review of its debt management office after initially resisting external oversight. The reversal suggests internal concerns about the office's $600bn bond issuance strategy, particularly its duration risk management during a period of yield curve volatility. Sovereign debt offices worldwide are grappling with similar challenges: how to finance growing deficits without destabilising domestic bond markets. Australia's move signals that even AAA-rated governments are questioning whether their debt strategies can handle the next economic shock.