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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$400mn of the 2.75% 21 May 2041 Bond, issue #TB156. The
line was last sold on 17 July 2018, via syndication. The syndication saw A$3.6bn
allotted at an average yield of 3.0900%.
- The line has A$3.6bn outstanding.
- Recent AOFM issuance has focused on the 10-Year sector of the curve, and it is
fair to say that the last couple of rounds of supply were less than firm (this
could be a product of continued issuance in the 10-Year zone over a short
horizon).
- The recent pull back in yields from cycle lows has seen the line cheapen in
both ASW & z-spread terms.
- Some desks have noted that the AOFM wouldn't usually conduct a tender of such
a long bond without indications of demand from dealers.
- 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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