AUCTION PREVIEW: Apr '27 Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$1.0bn of the 4.75% 21 April 2027 Bond, issue #TB136. The line was last sold on 13 November 2020 for A$1.0bn. The sale drew an average yield of 0.4439%, at a high yield of 0.4450% and was covered 5.6970x. There were 51 bidders, 15 of which were successful and 6 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 77.9%.

• The excess liquidity evident in the domestic banking system and comparatively attractive yields in the international arena will continue to draw an underlying level of solid demand at ACGB auctions in the immediate term, although this zone of the curve may be some susceptible to some cheapening if the RBA comes down on the hawkish side in July.
• Results due at 0200BST/1100AEST.