AUCTION PREVIEW: November 2025 Bond Supply Due

The Australian Office of Financial Management (AOFM) will today sell A$1.5bn of the 0.25% 21 November 2025 Bond, issue #TB161. The line was last sold on 2 November 2020 for A$1.5bn. The sale drew an average yield of 0.2745%, at a high yield of 0.2750% and was covered 6.2733x. There were 45 bidders, 11 of which were successful and 2 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 81.7%.

• Negative net weekly supply dynamics, based on RBA ACGB purchases should provide some support, as should the upcoming AOFM issuance hiatus, although that wasn't the case in the case of the ACGB Nov '31 auction that was seen earlier this week. Still a much more digestible DV01 at today's auction should make for smoother takedown.
• 5-Year swap spreads have moved back from tights in recent months.
• The recent launch of the new 5-Year bond futures contract hasn't seen much in the way of liquidity, although it does have a H1 maturity, which means activity and liquidity should pick up as the 3- & 10-Year contracts roll from Z0 into H1.
• Results due at 0000GMT/1100AEDT.