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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$800mn of the 1.50% 21 June 2031 Bond, issue #TB157. The
line was last sold on 19 June 2019 for A$2.0bn. The sale drew an average yield
of 1.4307%, at a high yield of 1.4325% and was covered 2.4300x. There were 56
bidders, 26 of which were successful and 12 was allocated in full. Amount
allotted at highest yield as percentage of amount bid at that yield was 65.2%.
- This offering will represent the first ACGB offering of the new FY, with the
line tapped a little earlier than most expected, although the auction size is
also slightly smaller than most exp. Repeated issuance should bring the bond "up
to size" quickly. The line has A$5.0bn outstanding at present.
- The line's yield sits ~5.0bp or so back from the lows of its short-life, with
the ASW spread operating around the middle of its range.
- The line's performance is in-keeping with surrounding issues, with little/no
penalisation for the illiquidity associated with smaller size in circulation.
- 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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