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

AUSSIE BONDS
AUSSIE BONDS: AUCTION PREVIEW: The Australian Office of Financial Management
(AOFM) will today sell A$3.0bn of the 1.50% 21 June 2031 Bond, issue #TB157.
- This is the first time that the bond has been offered.
- As a reminder, the coupon level undershot what most desks were expecting,
which lengthens the modified duration of the line, pushing that particularly
metric closer to the April 2033 line (although he April 2033's high coupon
shortens its duration).
- Desk estimates that we have seen have EFP spread expectations of +8.5bp-11.8bp
to the current June 10-Year futures contract.
- CBA note that this bond will form part of the XM futures basket for the H0
contract.
- Results due at 0200BST/1100AEST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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