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

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

(AOFM) will today sell A$150mn of the 3.00% 21 September 2025 I/L Bond, issue

#CAIN407. The line was last sold on 14 May 2019 for A$150mn. The sale drew an

average yield of 0.0924%, at a high yield of 0.0975% and was covered 4.3000x.

There were 38 bidders, 12 of which were successful and 8 was allocated in full.

Amount allotted at highest yield as percentage of amount bid at that yield was

26.1%.

- 5-Year breakevens have rebounded from their all-time lows in the last few

sessions, and last hover ~12bp or so off their trough, printing around 1.30% at

writing. The extent of the RBA's easing cycle and market beliefs re: the ability

of the central bank to stoke inflationary pressures will be key to BEI price

action over the medium term. Developments re: fiscal stimulus will also be eyed

- Results due at 0200BST/1100AEST.