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

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

(AOFM) will today sell A$400mn 2.75% 21 Apr 2024 Bond, issue #TB137. The line

was last sold on 15 May 2019 for A$900mn. The sale drew an average yield of

1.3028%, at a high yield of 1.3050% and was covered 2.8444x. There were 28

bidders, 14 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 37.1%.

- The line forms part of the underlying basket for YMZ9.

- The line has cheapened from outright richest levels seen in early October,

with yields backing up in the wake of the warmer "mood music" surrounding

Sino-U.S. trade matters at present, coupled with diminished market pricing re:

further imminent easing from the RBA. Outright yield sits at 0.859% at writing,

just under 25bp from the life time low. Small issuance size of a shortish

maturity bond should support demand at auction, especially given lack of recent

issuance. The line looks a little rich vs. surrounding issues, although this has

tended to be the case in recent times.

- Results due at 0000GMT/1100AEDT.