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

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

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

was last sold on 16 October 2019 for A$800mn. The sale drew an average yield of

1.0742%, at a high yield of 1.0775% and was covered 2.1688x. There were 35

bidders, 22 of which were successful and 14 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 12.6%.

- The AOFM reverts to type with a typically sized tap of the 9-12 Year ACGB

zone.

- Recent issuance in the zone has tended to be slightly better received, with a

backup in yields probably helping. The line is currently yielding 1.2565%, ~35bp

off the all-time low registered in October.

- There seems to be little in the way of standout relative value in the zone at

present.

- The 3-/10-Year spread has been on a steepening trend since early Sep.

- Results due at 0000GMT/1100AEDT.