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

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

(AOFM) will today sell A$800mn of the 2.75% 21 Nov 2029 Bond, issue #TB154. The

line was last sold on 9 October 2019 for A$800mn. The sale drew an average yield

of 0.8759%, at a high yield of 0.8775% and was covered 2.2750x. There were 29

bidders, 15 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 51.2%.

- The line forms part of the underlying basket for XMZ9. Yields have edged away

from cycle lows in recent sessions, with the line now yielding 1.1265%, ~25bp

from the cycle low, aided by perceived lower chances of a hard Brexit & warmer

mood music surrounding the Sino-U.S. trade war, which may facilitate some

caution around supply.

- The domestic 3-10 Year curve has steepened during October.

- The zone continues to look dear on the curve (nothing out of the ordinary

there, while it continues to look unattractive for Japanese participants on an

FX-hedged basis.

- Results due at 0100BST/1100AEDT.