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

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

(AOFM) will today sell A$1.2bn of the 1.50% 21 Jun 2031 Bond, issue #TB157. The

line was last sold on 18 September 2019 for A$1.2bn. The sale drew an average

yield of 1.1779%, at a high yield of 1.1800% and was covered 2.0425x. There were

35 bidders, 17 of which were successful and 11 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 39.8%.

- The line has A$11.0bn outstanding, so we should expect continued issuance to

bring it "up to size" as it approaches basket inclusion.

- The auction continues the recent AOFM focus on 9-12 Year supply.

- The line's ASW & Z-spreads sit towards the middle of their 2 month ranges,

- The line's yield trades within 10bp of the all-time low, at 0.992%, with the

latest bout of RBA easing and dovish guidance, as well as uncertainty over the

health of the global economy helping to underpin demand in early trade today.

- Results due at 0200BST/1100AEST.