AOFM notice on issuance/buybacks.......>

AUSSIE BONDS: AOFM notice on issuance/buybacks following the release of their

updated forecasts:

- Bond issuance in 2017-18 is now expected to total around A$74 billion, a

decrease of A$6 bln expected in the 2017-18 Budget. After accounting for

maturities of A$31bln and buybacks of around A$15bln, this represents net

issuance of A$28bln. Around A$32bln of Bonds will be issued during the remainder

of 2017-18 ($42bln issued to date). Most issuance will be achieved via auction.

- AOFM plan a new Nov 2029 bond via syndication and further syndicated taps of

other issues are planned.

- New May 2041 bond line is planned to be issued in the first half of 2018-19 to

support the 20-Year future contract.

- AOFM will continue buybacks, primarily of bonds in the 3-Year future basket,

will hold 2 buybacks most months but this could vary. Around A$7bln bought back

already, total expected to be around A$15bln.

- Planned issuance of linkers around A$5-6bln, around A$4bln issued to date,

will hold 2 auctions most months.