Against a backdrop of heightened volatility and uncertainty, the last 12 to 18 months has been particularly challenging for the market. Changes to excise tax and the implementation of various subsidy schemes, while supporting households, have affected measured inflation adding more disruption and uncertainty to the TIBs market. Unlike the UK, there is no natural buyer because current legislation means that linkers remain off-benchmark for defined contribution superannuation schemes. The market also has fewer active participants resulting in a more concentrated investor base.  While the AOFM does not rely on or need TIBs for funding, we believe that well-developed financial markets should have a market-based measure of inflation expectations.  […]