AUCTION PREVIEW: Solid Demand Expected for ACGB Nov '25

The Australian Office of Financial Management (AOFM) will today sell A$2.0bn of the 0.25% 21 November 2025, issue #TB161. The line was last sold on 12 August 2020 for A$3.0bn. The sale drew an average yield of 0.4565%, at a high yield of 0.4600% and was covered 4.3500x. There were 48 bidders, 21 of which were successful and 14 were allocated in full. Amount allotted at highest yield as percentage of amount bid at that yield was 9.5%.

• Rolldown towards the RBA's 3-Year yield target of ~0.25%, the impending introduction of a 5-Year futures contract and the allure of ACGBs for foreign buyers provide several clear sources of potential demand ahead of today's supply.
• ASWs sit at elevated levels.
• Yields have moved back from recent cheaps, but most desks are looking for solid, if not stronger demand, given the aforementioned positives flagged.
• Results due at 0200BST/1100AEST.