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 Nov 2029 Bond, issue #TB154. The

line was last sold on 9 September 2019 for A$500mn. The sale drew an average

yield of 1.0468%, at a high yield of 1.0500% and was covered 3.7600x. There were

29 bidders, 11 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 3.7%.

- The line forms part of the basket for XMZ9.

- The line's outright yield now sits around 12bp from the recent low at ~1.00%

with little to split the surrounding "basket lines" in terms of RV.

- Global uncertainty and the prospect of further easing from the RBA provide

some supportive factors to today's auction, although the relatively close

proximity to historically low yield levels & the ongoing flatness of the curve

(though the 3-/10-Year spread is off the recent flats) may limit take up.

- The supply maintains the AOFM's focus on the 9-12 Year sector of the curve.

- Results due at 0200BST/1100AEST.