The Australian Office of Financial Management (AOFM), the federal government’s financing arm, sold $3.25 billion of 10-year inflation-linked bonds on Tuesday in a heavily oversubscribed auction underscoring the appeal of inflation protection in a world reliant on record monetary stimulus.

Attracting more than 30 investors, it represented the largest inflation-linked bond in almost three years, according to one of the three joint lead institutions that syndicated the offer.