News: ANZ ANZ may have broken law on Australian government bond sale, corporate regulator says

SYDNEY, July 24 (Reuters) - Australia's ANZ Group (ANZ) may have broken the law over a A$14 billion ($9.3 billion) government bond sale, the head of the corporate watchdog told the Australian Financial Review (AFR), as it investigates potential market manipulation.

The Australian Securities and Investments Commission (ASIC) has been investigating the bank's 10-year Australian treasury bond sale in April 2023, but the regulator had previously declined to comment publicly on the bond trade accusations.

The lender had allegedly inflated the value of government bonds after the price of 10-year futures contracts used to set rates were moved in favour of ANZ and against the government just before terms were set, according to media reports.

ANZ CEO Shayne Elliott on Monday told 6PR Radio that the watchdog always reviewed the sale of government bonds, and that he "did not see any wrongdoing on ANZ's part."

But ASIC Chair Joe Longo told the AFR: "It's a matter for the CEO of ANZ how he wants to characterise it, but it's on the public record that it is an investigation, which means by definition we suspect a contravention of the law."

ANZ did not immediately respond to a request seeking comment, but Australia's fourth-biggest bank this month said it had hired external lawyers to help the probe into the claims and would hold people accountable for any wrongdoing. ($1 = 1.5129 Australian dollars)