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

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

(AOFM) will today sell A$500mn of the 2.25% 21 May 2028 Bond, issue TB#149. The

line was last sold on 4 Feb 2019 for A$400mn. The sale drew an average yield of

2.2256%, at a high yield of 2.2275% and was covered 3.1600x. There were 27

bidders, 17 of which were successful and 7 were allocated in full. Amount

allotted at highest yield as percentage of amount bid at that yield was 23.7%.

- There is A$28.2bn of the line outstanding.

- The line does not form part of the underlying futures basket for YMZ9.

- The line currently yields 1.1130%, ~26bp off of its all-time low, but ~15bp

short of the recent high.

- The relatively small size of the tap and the fact that the line hasn't been

auctioned since February suggests that dealers may have requested an auction of

the line, which could support demand.

- The line's ASW spread trades towards the top end of its recent range.

- Results due at 0000GMT/1100AEDT.