A significant reduction in the net debt of the Commonwealth Government has raised questions about the ongoing need for a market in Commonwealth Government securities (CGS). Which of the following is correct?

Select the correct answer

1. The government has decided to close the Australian CGS market once all remaining bonds have been redeemed.
2. Increased borrowing by state governments has meant that CGS have been replaced by semi-government bonds.
3. The market will continue as the government has decided to issue T-notes instead of bonds.
4. Around $5 billion of T-bonds will be issued each year to maintain a liquid and efficient market.