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

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

(AOFM) will today sell A$400mn of the 2.75% 21 November 2029 Bond, issue #TB154.

The line was last sold on 8 May 2019 for A$900mn. The sale drew an average yield

of 1.7652%, at a high yield of 1.7675% and was covered 3.5222x. There were 36

bidders, 17 of which were successful and 10 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 17.8%.

- The line forms part of the basket for XMU9.

- The line's outright yield sits at 0.8885%, ~2.0bp off the recent low after a

retest this morning. The 3-/10-Year yield spread sits just off recent flats.

- This auction adds to the AOFM's recent focus of issuance in the 9-12 Year zone

of the curve. Take up in the zone has typically been less impressive moving

through the recent issuance cycle (varying sizes at auctions may have some

explanatory power here, but likely not all)

- The line sits around the middle of its recent range in ASW terms, rebounding

from recent cheaps.

- Results due at 0200BST/1100AEST.