The Australian Office of Financial Management (AOFM) has priced $700 million of April 15, 2015, Treasury bonds at a weighted average yield of 5.4534 per cent.
The Reserve Bank of Australia took up none of the offer, the AOFM said on Friday.
The bonds have a coupon of 6.25 per cent.
Bids ranged from 5.445 per cent to 5.460 per cent.
Some 37 per cent of bids at the top of the range were allocated.
The coverage ratio - the ratio of bids received to the value of bonds offered - was 2.9.
The settlement date is Wednesday, November 4.
© 2009 AAP
