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

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

(AOFM) will today sell A$800mn of the 2.50% May 2030 Bonds, issue #TB155.

- The line was last sold on 28 August 2019 for A$800mn. The sale drew an average

yield of 0.8989%, at a high yield of 0.9000% and was covered 2.7000x. There were

33 bidders, 13 of which were successful and 4 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 64.3%.

- 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

1.1550%, ~18bp off the recent low, at the cheapest outright level seen since

early August.

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

- The line looks a little dear vs. shorter dated basket constituents but cheaper

vs. ACGB Jun '31. While the uptick in yields offers a more attractive entry

point, the move may deter buyers ahead of the upcoming global risk events.

- Results due at 0200BST/1100AEST.