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AUCTION PREVIEW: Nov-27 I/L Supply Due


The Australian Office of Financial Management (AOFM) will today sell $150mn of the 0.75% 21 November 2027 Indexed Bond, issue #CAIN414. The line was last sold on 9 November 2022 for A$150mn. The sale drew an average yield of -0.8456%, at a high yield of -0.8425% and was covered 4.8533x. There were 43 bidders, 6 of which were successful and 3 were allocated in full. Amount allotted at the highest yield as a percentage of amount bid at that yield was 44.4%.

  • Breakeven market dynamics reflect some faith in the RBA returning inflation to the target band over the longer run, coupled with the pullback in oil prices, although the recent moderation in market pricing re: RBA rate hike expectations has allowed breakevens to creep higher again.
  • Even though 5-Year breakevens operate comfortably off of cycle highs we would expect continuing angst surrounding the well documented global inflationary impulse (which may have peaked) to generate solid demand at the upcoming auction, promoting smooth takedown.
  • Results due at 0000GMT/1100AEDT.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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