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

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

(AOFM) will today sell A$800mn of the 2.50% 21 May 2030 Bond, issue #TB155. The

line was last sold on 11 September 2019 for A$800mn. The sale drew an average

yield of 1.1494%, at a high yield of 1.1525% and was covered 3.1063x. There were

38 bidders, 20 of which were successful and 12 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 12.0%.

- The line forms part of the basket for XMZ9.

- The line's outright yield now sits within 10bp of its lifetime low, last

~0.95% 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

may limit take up.

- Results due at 0200BST/1100AEST.