AUCTION PREVIEW: Nov-32 I/L Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$150mn of the 0.25% 21 November 2032 I/L Bond, issue #CAIN416. The line was last sold on 24 May 2022 for A$150mn. The sale drew an average yield of 0.8732%, at a high yield of 0.8875% and was covered 2.4400x. There were 28 bidders, 14 of which were successful, and 10 were allocated in full. The amount allotted at the highest yield as a percentage of the amount bid at that yield was 50.0%.

• Breakevens indicate that markets continue to have faith in the RBA pulling inflation back to within its target band in the medium term, with both 5- & 10-Year BEIs operating comfortably within the RBA’s tolerance levels.
• A reminder that the Bank has flagged its resolve when it comes to inflation expectations remaining anchored.
• Ultimately, the current inflationary backdrop should result in a solid baseline level of demand and the smooth passage of supply.
• Results are due at 0200BST/1100AEST.