"If the AOFM sticks with issuance of A$230 billion there will be a significant pre-funding of next year's deficit, which is on track to be much smaller than expected."
Figures out Thursday showed prices for iron ore exports jumped by almost 12% over the December quarter, delivering a big boost to mining profits and government tax receipts.
That deficit is being funded by the biggest government borrowing program in Australian history, but so far demand for the debt has been more than ample.