The transaction was managed by Australia & New Zealand Banking Group, Commonwealth Bank of Australia, Deutsche Bank and Westpac Banking.

Australia’s government sold A$11 billion ($8.5 billion) of 11-year debt notes in its biggest-ever bond transaction as investors hungry for higher returns set aside concerns that persistent budget deficits will erode the nation’s AAA credit rating.

The sale marks the third time in less than six months that Australia has set a new borrowing record. It exceeds last month’s A$9.3 billion issued at a sale of December 2021 notes.

The newly-issued November 2028 securities were priced to yield 3.005 per cent. The bond has a coupon of 2.75 per cent.

It will eventually fall into the basket of securities underpinning the Australian Stock Exchange’s 10-year futures contract, which is a major fixed income derivative. The basket currently includes notes with maturities ranging from 2026 to 2028.

Australia’s government has been ramping up issuance as it struggles to tighten its grip on its budget deficit and looks to finance a debt load that is expected to top A$600 billion in 2020.

Investors have called for Australian debt despite expectations of tight US monetary policy acting as the driving force behind a slump in global bond markets.

The scale of the government’s most recent sale suggests that concerns about Australia’s capacity to maintain its peak credit rating are being set aside. However, S&P Global Ratings has had a negative outlook on the country since July last year.