AUCTION PREVIEW: The Australian........>

AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management

(AOFM) will today sell A$1.0bn of the 2.75% November 21 2029, issue #TB154.

- The line was last sold on November 14 for A$1.0bn. The sale drew an average

yield of 2.7366%, a high yield of 2.7375% and was covered 3.910x. There were 37

bidders, 14 of which were successful and 6 were allocated in full.

- The line has $17.1bn outstanding with a modified duration of 9.43 years.

- The bond forms part of the deliverable basket for XMZ8.

- The line's yield has operated in a ~20bp range in the time since the most

recent auction, last sitting at the bottom of the range at 2.5340%, as AU yields

follow Tsys lower, albeit with some lag in the 10-Year sector as the space

unwinds some of the year's earlier outperformance vs Tsys.

- The line looks a little rich vs. the nearby April 2029, if anything, in terms

of ASW & Z-spread RV matters. Although it is worth remembering that it is the

latest Bond to move into the deliverable basket.

- Results due at 0000GMT/1100AEDT.