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

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

(AOFM) will today sell A$150mn of the 1.25% 21 Feb 2022 I/L Bond, issue

#CAIN409.

- The line was last sold on 11 June 2019 for A$150mn. The sale drew an average

yield of -0.1899%, at a high yield of -0.1825% and was covered 3.4667x. There

were 28 bidders, 9 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 14.3%.

- There is A$6.44bn of the line in circulation.

- Break even inflation expectations remain anchored near cycles lows, even in

the wake of the back to back 25bp cash rate cuts employed by the RBA, surprise

election win for the incumbent coalition and impending tax cut windfall. This

suggests that markets remain sceptical that the outlined monetary and fiscal

measures will reignite the inflationary impulse in Australia, which will likely

result in a lower for longer interest rate period.

- Results due at 0200BST/1100AEST.