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

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

(AOFM) will today sell A$500mn of the 2.75% 21 November 2029 Bond, issue #TB154.

- The line was last sold on 26 August 2019 for A$400mn. The sale drew an average

yield of 0.8841%, at a high yield of 0.8900% and was covered 3.9500x. There were

33 bidders, 13 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 25.0%.

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

of the curve.

- The line forms part of the basket for XMU9. The line's outright yield sits at

1.0475%, ~18bp off the recent low, but 5bp back from last week's cheaps.

- The 3-/10-Year yield spread has edged away from last week's multi-year flats,

but still looks very flat on a historical basis, pressured by the demand for

core global FI and pivot towards fresh monetary easing at the majority of the

world's major global central banks.

- The line sits towards the cheaper end (in ASW terms) of its recent history.

- Results due at 0200BST/1100AEST.