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AUCTION PREVIEW: I/L Supply Due

AUSSIE BONDS

The Australian Office of Financial Management (AOFM) will today sell A$150mn of the 0.75% 21 November 2027 I/L Bond, issue #CAIN414. The line was last sold on 13 October 2020 for A$150mn. The sale drew an average yield of -0.6312%, at a high yield of -0.6250% and was covered 5.6333x. There were 43 bidders, 9 of which were successful and 8 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 60.0%.

  • Australian breakevens have moved further away from their August peak in recent sessions, with the RBA's latest round of easing and lack of a clear 'Blue Wave' U.S. election outcome doing little to boost market-based inflation expectation measures.
  • Still, the overnight developments re: a COVID-19 vaccine should help demand at auction, with low levels of BEI (in historical terms at least) also set to provide at least modest demand, despite the surge away from the COVID trough.
  • Results due at 0000GMT/1100AEDT.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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